i'm new to the envelope system and to budgeting in general. the only problem i have is that most of my bills (except rent) are paid on line. currently, this is what i did:
1) weekly pay check, i take the x amount for rent and put it in 2nd checking account (i have 2 checking accounts, 1 for bills/gas, the 2nd one for rent). i do this every week, so at the end of the month, i have full amount for rent. then i write check at the end of the month and send it. works great because the money is out of sight and we are not spending the funds in the primary checking account.
2) i take out x amount for food budget every week in cash and stuff it in an envelope and keep it with me at all times. i go grocery shopping once a week. if i have left over money, that x amount will be used to eat out.
3) i asked my credit union if i could open more checking accounts and they said no. i would like to have up to 8 checking accounts so that i can "stuff" those accounts and use the funds as needed, just like the old fashioned envelope system but online. i called wells fargo, and they charge a $30 dollar fee a month unless there is a balance of $24k in account =( .
does anyone know of a bank that allows however many checking accounts with no fees or required balances?
how do you all do the envelope system when paying bills online?
05-24-2016, 12:53 PM
For me having that many checking accounts would be a nightmare! I like things as simple as possible. We have one checking account. I use a cheap ol notebook and pen and have separate categories, in columns. These columns amounts are not recorded into the check book. If I pay an insurance bill I subtract it from the insurance column in my notebook. So to balance the checkbook I do have to add in the balances in my columns but it is easy and always comes out right.
05-24-2016, 11:58 PM
I have a spreadsheet that I created to do our bills on. It is a double entry accounting system ('cause I am a nerd). We run on one checking, one savings, and one savings that is an emergency fund/holding account. The checking and savings are our "working" accounts. If money is held short term, it goes into savings (rent, utilities, etc). If it is being held long term (ie, for big projects like painting the house or new rock for the driveway), then that money sits in the emergency fund. I have a list on the bills spreadsheet with the money earmarked.
For a matter of disclosure: I do have a second checking account right now. I have student loans. If you do a direct withdrawal, you get a .25 percent discount on the interest rate. I opened this account only for the student loans. When they are paid off, I will close this account.
06-14-2016, 05:20 PM
I have one account with a debit card attatched to it. I keep separate check registers for each item I want an envelope for. When I add the balance in each of the registers together, I get the balance in the account. Great for saving up for big items, sinking funds etc...
10-02-2016, 11:48 PM
I just started the envelope system myself and it works great! I only use the envelope system for any expenses that are not bills. All bills that can be paid online can be paid with one checking account.
Use the envelope system for day to day spending. Here are my categories for example:
I put an envelope in my purse when I need it. All other envelopes remain at home. I also use the Every Dollar App to manage my expenses and define my budget for the month. It really helps.
Also in case of emergency I have my debit card which has a few hundred dollars and 1 credit card.
Hope that helps!
10-03-2016, 06:23 AM
I use the "old age" system and for me the secret has always been not having many bills or much money to keep track of!
I make a budget at the beginning of each year and an estimate of the expenses for each month, some months run high and some months run low. I use one checking account with a debit card and one credit card, that I pay in full each month. I make a cash withdrawal once a week for day to day expenses and the rest of the money stays in the checking account to pay bills. I write down every penny I spend in a notebook from the dollar store and keep a running tally for the month, ultimately for the year. Seeing the spending helps me know when to "tap the brakes" if expenses start to run high and when I can "step on the gas" if I have a little wiggle room. It works for me.
10-03-2016, 11:20 AM
I budget for everything in YNAB. No need for envelopes. I can use on my phone also. I budget for the month and it deducts for each category as I spend. Very easy. I used to do separate savings linked to checking years ago but YNAB is mu