Envelope Budgeting System Tip

[Mrs. Bradbury]

Hi,

I wanted to say hello and thank you. I'm a longtime lurker and have gotten such good information from this board!

I have an idea that someone else may have thought of before me, but I've not seen it posted. We use the Envelope system for budgeting, but keeping track of all the envelopes was a pain, and inevitably I would forget to bring a needed envelope with me when buying something other than groceries. The way I solved it is I use a small coupon holder that I found for sale at my supermarket - it's made from heavy cardstock and is approx. 6" long and 4" high, accordion pleated - and re-labeled the sections for food, grooming, clothing, school supplies, car maintenance, etc. It fits nicely in my purse and works perfectly! Looks a little strange to pull money out of, but who cares if it makes my life easier?

 

[disneynuts777]

What a perfect idea. I have one now for all my coupons. I think the next time I am at the dollar store I know what I will be picking up!!!!!!!!!

 

[kacaju]

do you walk around with all the money all the time?? That would make me nervous!!
When we first started using the envelopes I used to worry that I would be caught without enough money to pay for something. I used to keep a cc in my wallet for those *just in case*
Over the past year I found I never had to pull out that cc!! I always have a small amount of cash on me, but never all of it.

 

[Mrs. Bradbury]

do you walk around with all the money all the time?? That would make me nervous!!

The money for our house payment, car payments, utilities, etc. - no, I don't put them in the coupon holder. That I keep in our checking account because it's money in, money out, kwim? But for the smaller budget categories, yes. After living on a cash basis for over a year, I realized that I am much better (translation: I don't overspend!) at keeping the cash with me than leaving it in my checking account and using my debit card.

Of the cash in the coupon holder, my biggest stash is for groceries, but spending $100 every week doesn't leave much for me to carry around; also, at any one point I only have 2 weeks' worth + a portion for the 5 week months that happen twice a year, because my husband gives me cash from his paycheck twice a month for groceries. Within the other budget categories I might accumulate <$200 total before something needs to be bought, so no, carrying cash doesn't make me nervous because it's not really that much.

 

[tinkarooni]

Welcome!

I love this idea. I am a longtime budget board reader and poster and this one is new to me. I even have one of these in the closet and just picked up my monthly money today. Totally intend to do this. Thanks.

 

[kacaju]

After living on a cash basis for over a year, I realized that I am much better (translation: I don't overspend!) at keeping the cash with me than leaving it in my checking account and using my debit card.

I hear you on this!! I am amazed at how much money we are saving by using cash only!!

 

[Mrs. Bradbury]

Disneynuts and Tink - you're very welcome! I was rounding the corner of an aisle, the coupon holders were hanging there, and I had an "AHA!" moment. Got to love those!

 

[Mrs. Bradbury]

I hear you on this!! I am amazed at how much money we are saving by using cash only!!

My husband was very hesitant to go to all cash because he said he would spend it, but God love him, he CANNOT understand the basic workings of a checking account. He would go to the ATM and whatever balance it showed, he thought that's how much money he had. And he's a smart man!

Now, when payday rolls around he's still got money in his pocket from his last payday, and he's so proud of himself!

 

[AnastasiaTremaine]

Thank you, MrsBradbury!
I wanted to start my envelope system this weekend (when my husband gets paid ), and I was just going to use some colored paper envelopes, but your idea was much more user-friendly! I dug around my desk drawers and found a plain/clear plastic little coupon organizer I've had for probably 6 years and never used, fancied it up a bit (because I knew I'd be much more likely to use it if it was cute) and then added some reminders on the inside flap so I think about what I'm budgeting for as I hand out the cash!

Hope these aren't enormous...but thought you might like to see what you inspired!

The outside - I used one of my daughter's hairbands to keep it closed

The inside! Best part

And a closeup on the guts of it. I haven't made the labels for the dividers yet...still need to decide on what 'names' to use and how many divisions I want to make. (And I just noticed that whoever made that scrapbook quote spelled 'Leonardo' wrong - HA!)

Anyway, I am really excited to get started with this system! I recently redid our budget and was astonished by how much we spend each month and I blame it on our totally lassiez faire attitude with the debit cards. Not good. Wish me luck!

 

[Mrs. Bradbury]

Anastasia,

OMG that is the BOMB! You could totally sell those! I'm afraid I would spend more just so I could use it!

Your creativity really is amazing! And I do wish you luck!

 

[AnastasiaTremaine]

Ha! Well, thanks! Little projects like that are my favorite - I can knock them out without overthinking. Yeah, as I was doing it, I was thinking, boy, I could totally sell these things! Thank you for the inspiration, though - I think having something like this will keep me on track longer, too. Yay...budgeting!
How did I get to an age/stage where I am stoked about money management?!

 

[Mrs. Bradbury]

How did I get to an age/stage where I am stoked about money management?!

Seeing the ages of your kids, and with my kids being 22, 17, and 11, let me advise you to start now with this exercise to get ready for the teen years: just take some perfectly good money, $10s and $20s - LOTS of them, go outside, and set them on fire. Repeat often. That's what it's like to have older kids!

You also might want to start trying to grow a money tree. Just bury a dollar in the ground and see what happens. Apparently all the other kids' parents have one. Didn't work for me, but it might for you!

Seriously though, you have mad skilz. So cute!

 

[Waseller77]

Thank you, MrsBradbury!
I wanted to start my envelope system this weekend (when my husband gets paid ), and I was just going to use some colored paper envelopes, but your idea was much more user-friendly! I dug around my desk drawers and found a plain/clear plastic little coupon organizer I've had for probably 6 years and never used, fancied it up a bit (because I knew I'd be much more likely to use it if it was cute) and then added some reminders on the inside flap so I think about what I'm budgeting for as I hand out the cash!

Hope these aren't enormous...but thought you might like to see what you inspired!

I LOVE your "wallet"! The inspirational notes on the inside are perfect - I think something like this could totally keep me in check!