Envelopes

[redmaples]

Our bills are paid from the checking acct..
We have a savings acct./ emergency fund that has been dipped into for unexpected expenses...
We haven't had to use credit for anything in many months..
There are a few items we want to buy..
1.new tires for the truck
2.an eco fan for the woodstove (will circulate heat & help dry clothes on wood racks faster)
3.another new cabinet for the kitchen
4. a new computer monitor/screen
5. Motorcycle (long term savings)

Using an envelope system we prioritized our needs/wants as listed above. We know we can put x amount of $$ a week towards saving for these & will use the snowball system. Example: when we are finished saving for the tires the balance of $ that would have went to tires will go to env #2. Each week every envelope gets some cash. We started saving for the tires before we really needed them. By doing this we won't have to take $ from the savings/emergency fund.

The great thing about this planning/ saving system is that we worked it out together (DH & myself). He recently quit smoking & is looking to manage his savings.

[MarshHen]

I love your system and think I will start one here since we have several things we want to save for. Thanks for sharing.

[watchingpennies]

That is a good idea...I wondered how to use the envelope system with those items that you want but aren't necessarily part of a budget on a regular basis.

[autumnlynn]

That's a really good system. I love using envelopes and the cash system.

[Sasha]

That is a really good idea!

[MTS04]

We do somewhat of the same thing. When we have $$ left over in our envelopes at the end of the month, I put that extra towards a want. That envelope is getting thicker. (There are a bunch of ones in there )

Thanks for your idea too, I love envelopes!!

[oct2667us]

Great Idea, Now if i can get dh to leave the extra money alone. He is so not good at saving money.

[banana]

That is a great idea.