Or lack there of...
We've been looking at budgets for a while...trying to find which method will work best for us. We've decided to go with the envelope method. I'm just using some recycled envelopes, nothing super cute. We've tried tracking on spreadsheets (since I'm married to the excel guru) but I'm really bad about getting on the computer everyday to keep track, and Aaron's even worse!
First up, bank accounts. We have 4, not including the kids' savings accounts...
1. Family checking- This is the account paychecks go in to and that we pay all the bills out of.
2. Slush Fund- This is were we put 'extra' money. We also call it the "Fun Fund." Date night, Going out to eat, etc comes out of this account. I'll explain how this works later.
3. Savings- More on how this builds up later too. This is the account we use for unplanned expenses... Car repairs, unforeseen medical expenses, etc.
4. Untouchable Savings- Money that goes in this account doesn't exist for all intents and purposes.It's for MAJOR emergencies. Like Aaron's out of a job emergencies!
So...monthly we track all our utilities, loans, Aaron's gas money isn't something we can put in an envelope since it's not something he can cut back on, and the 'untouchable' is money we put in the savings account we don't touch.
Here is the form I use to track it all...
I print it out and put it in a binder each month. I keep track of the bills as they come in and mark off when they're paid.
I use tab dividers with a pocket on each side. I stick bills to be paid in the front of the divider and move them to the back once their paid until I clean it out at the end of the month.
At the end of the month, any savings from being under budget gets divided in half. Half goes in the Slush Fund and half goes in Savings.
Envelopes. Since Aaron gets paid bi-weekly it works best for us to have our envelopes budgeted for 2 weeks at a time. We have Six...
1. Groceries
2. Gas- This is the gas for the family car.
3. Bree's-This is my money to do with what I want. Out to eat with friends, a bottle of wine for wine night, a new outfit, etc. all has to come out of this
4. Aaron's-His money to do with what he wants.
5. Aaron's lunch money-If he runs out of this, he has to pack his lunch for work.
6. House money- Non-food expenses. paper towels, toilet paper, makeup, deodorant, etc...
I
print two of these out a month and put them in the binder behind the monthly tracker.
Each envelope also has a two-pocket divider. The first 2 weeks of the month go in the front pocket, the second two weeks in the back. Each night we log our receipts and put them in the correct pocket.
This budget will only work if you follow the rules. If you don't stick to it, it's pretty pointless to go through all this work.
1. (the most important one) When the envelopes empty, too bad. No more spending.
2. Of course there will be exceptions...Say you've reached your grocery budget and you need milk before payday...You can only borrow from that page! That weeks envelopes. No borrowing from next week's grocery budget.
Any extra at the end of the two weeks gets divided in half just like the monthly expenses. Half in Savings and half in the Slush fund. NO ROLLING MONEY FORWARD!
