anyone use the envelope system?

[MANDERS]

We've been using it since the first of the year .We use different envelopes for different wants/needs(mostly wants),we have changed them around quite a bit,just for the fact that we realized we didn't need money in some areas and more in others,like savings.Here is our list we take out $175 a week in cash in small bills and put them in these envelopes.

SAVINGS(MINE AND DH)$100-this is to save up to build our own home,we own ours,but want one farther out with more land.

KIDS SAVINGS(EACH GETS $5 A WEEK PUT IN)when it totals $50 we put it in their savings accounts,this is for expences as they get older,like car,clothes,extra acctivities,our kids are not yet in school so it is good we started early.

DISNEY WORLD$20-we want to go back so bad and by the time we go we will have only one debt ,our house,kinda a reward

CHRISTMAS-$15-includes birthdays,and any other major holidays,plus decor,and food for holidays

CLOTHING-$10-this envelope is for everyone,since I can get most of our clothes at yard sales or consignment sales or end of season sales,we should have quite a bit left over.

MINE A DH EXTRAS-$10-anything we want that is not in buget,and can be used for clothes too.we each get $10

We have used ones for gas,groceries,entertainment,and home improvements,but decided that we have cut way back on groceries,entertainment can be free most of the times,and home improvements are not a top priority since we have decided to save to build our own house.THings might change again,but we will see.So far we have over $1000 in our envelopes

[Curio]

Have you considered putting the kids' savings together in a certificate of deposit, first for 6 months then for longer as the money grows? Savings accounts, as we know, don't keep up with inflation, so we might as well put it in something that comes closer...

It's not as if your kids need the money now. When the amount grows to be large enough, you can split the accounts into one for each child.

[MANDERS]

Bumping for Nancy!Basically when you use the envelope system you keep cash in different envelopes for your bills,groceries,gas etc.As you see mine is basically for groceries,gas and extras.The money I use in my checking account is for bills only.This way I know I always have enough money in the account for my bills and usually are able to pay them when they come in.Everyones needs are different and I know some people who use it for everything.

[MANDERS]

Oh yeah this was the cash thing mentioned in SouthernJens post

[bmiltimore]

I'd like to try this idea. I like the idea of the envelope for saving for something like a trip to Disneyworld or a home. It is a tangible way to see yourself getting closer to your goals!

[SouthernJen]

I've been using the envelope system for about 1 year.

I use it for groceries / toiletries (Walmart items etc).

It is working great. Any money left over after 2 weeks (that's
when I get the cash at the bank, on payday) goes into a special
vacation fund.

Also, after going to the grocery store etc, any change I get back
goes into a change jar. When the jar is full, I cash in the change
& also put that money in our vacation fund.

The vacation fund is by no way huge but last summer we went
to the beach for 3 days & we were able to pay for meals w/
the vacation fund which sure does help.