RedneckCowgirl
Power Conserver
Anyone use/used one? Was it successful? Any tips? I am 19 and I have no self control when it come to money, which is something I'd like to change! Also I am about $600 in debt, and hoping this will help me get out 
Envelope Budgeting System?
- Thread starter RedneckCowgirl
- Start date
hwillm1977
Almost Self-Reliant
We use something similar... just in canning jars instead of envelopes...
We leave bank cards and the credit card at home, and once a week take out the money we need for our budget... put it in the appropriate jar and get receipts for EVERYTHING.
It's helped us be a lot more concious of where the money is going and how it dribbles away on useless 'stuff' that we don't really need.
We leave bank cards and the credit card at home, and once a week take out the money we need for our budget... put it in the appropriate jar and get receipts for EVERYTHING.
It's helped us be a lot more concious of where the money is going and how it dribbles away on useless 'stuff' that we don't really need.
Wannabefree
Little Miss Sunshine
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I used an envelope system with great success for years. Now I don't have enough money to put in an envelope to start with 
When we did use it...mind you...this was when our income was excessive of our outgoing, not the case right now...but anyway, as long as I only took the envelope that I needed to do whatever I was doing, things went well. If I took the grocery envelope with the clothing envelope to buy clothes though....blew it. I have two girls...clothing purchases and little sad faces were my weak spot :/ Little manipulators 
SO...my advice, take ONLY the envelope you PLAN ahead and don't mix grocery shopping trips with ANY of your weaknesses...hunger stinks. 
I learned that one pretty quick You should do fine. Don't forget the SAVING envelope!!! Everybody needs a stash if you can afford it!!!
When we did use it...mind you...this was when our income was excessive of our outgoing, not the case right now...but anyway, as long as I only took the envelope that I needed to do whatever I was doing, things went well. If I took the grocery envelope with the clothing envelope to buy clothes though....blew it. I have two girls...clothing purchases and little sad faces were my weak spot :/ Little manipulators SO...my advice, take ONLY the envelope you PLAN ahead and don't mix grocery shopping trips with ANY of your weaknesses...hunger stinks. I learned that one pretty quick You should do fine. Don't forget the SAVING envelope!!! Everybody needs a stash if you can afford it!!!
Marianne
Super Self-Sufficient
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I never used it, but a neighbor did with great success. She was clue-less about budgeting until her husband left her. She said the envelope system really helped her figure it out.
JRmom
Lovin' The Homestead
I used the envelope system years ago, when we first got married and cash was tight. It worked great, but you still have to follow through on NOT SPENDING... say, the electric bill envelope, for other stuff.
We sat down every payday and put our money together, then put the appropriate amount in each envelope, plus we gave ourselves some pocket money. Things were tight back then so we didn't have much to contribute to the "savings" envelope, but at least all the bills got paid on time.
I'd recommend this system for anyone having trouble seeing where all their money is going. You'd probably be surprised how quickly you can pay off $600 of debt. Good luck!
We sat down every payday and put our money together, then put the appropriate amount in each envelope, plus we gave ourselves some pocket money. Things were tight back then so we didn't have much to contribute to the "savings" envelope, but at least all the bills got paid on time.
I'd recommend this system for anyone having trouble seeing where all their money is going. You'd probably be surprised how quickly you can pay off $600 of debt. Good luck!
aggieterpkatie
Swiss Army Wife
My sister uses it and has great success with it!
gettinaclue
Almost Self-Reliant
I have used the envelope system or some form of it most of my life.
When I first got a job, I found myself blowing through money and no money was left to pay bills. I don't remember who told me about it, but it worked well then and still does now. It helped me pay off my cars early (I've only ever had 2 that I had to pay on).
I remember distinctly, my mom coming in my room those many thousands of years ago ( I was 17 - I'm pushing 40 now) and she saw my little envelope system. She was shocked LOL. Why, I don't know. But she was proud.
Balancing the check book and learning to control your spending aren't one in the same thing. Learn to do both. They are both important life skills.
These days, when I cash my check (direct deposit was NOT my friend) I use paperclips and sticky notes to keep everything together and label it. I never touch something that is set for something else unless it is a dire emergency. IE - sick family and I have to take an unplanned trip, so I dip into another stash if I have no savings.
I HIGHLY recommend you have a MAD MONEY stash. This is not your spending money, and it is not your savings or investment money. This is money you set aside for YOU and only you.
It grows more slowly than anything else. Many times, I have nothing to put in it, or can only put a couple of ones in, but I will splurge every once in a great while and get something for me and only me - like a mani or pedi, or something like that. Something totally frivolous that helps me to breathe a little easier for a bit since we budget so tightly. Even my DH doesn't know I have it, much less where I keep it LOL. It has saved my sanity more than once!!!!! It has also saved my butt when I didn't have access to my savings and needed some money RIGHT NOW for an emergency.
The only thing we have debt for right now is our house and a loan that will be paid off in a couple of months. We have 3 vehicles (none new, but all in good - if not GREAT working order) and we live fairly comfortably all things considered.
PLEASE
take my advice and start an investment envelope. Start setting aside money NOW that will protect your future.
Start your own life insurance policy - whole life - get it now, while you're young and it's cheap. This can make a heck of a difference later.
Take a class on how to manage your money. Look into Dave Ramsey. Old people stress this stuff for a reason - usually because we wish we had done it!!!!
Good luck to you.
When I first got a job, I found myself blowing through money and no money was left to pay bills. I don't remember who told me about it, but it worked well then and still does now. It helped me pay off my cars early (I've only ever had 2 that I had to pay on).
I remember distinctly, my mom coming in my room those many thousands of years ago ( I was 17 - I'm pushing 40 now) and she saw my little envelope system. She was shocked LOL. Why, I don't know. But she was proud.
Balancing the check book and learning to control your spending aren't one in the same thing. Learn to do both. They are both important life skills.
These days, when I cash my check (direct deposit was NOT my friend) I use paperclips and sticky notes to keep everything together and label it. I never touch something that is set for something else unless it is a dire emergency. IE - sick family and I have to take an unplanned trip, so I dip into another stash if I have no savings.
I HIGHLY recommend you have a MAD MONEY stash. This is not your spending money, and it is not your savings or investment money. This is money you set aside for YOU and only you.
It grows more slowly than anything else. Many times, I have nothing to put in it, or can only put a couple of ones in, but I will splurge every once in a great while and get something for me and only me - like a mani or pedi, or something like that. Something totally frivolous that helps me to breathe a little easier for a bit since we budget so tightly. Even my DH doesn't know I have it, much less where I keep it LOL. It has saved my sanity more than once!!!!! It has also saved my butt when I didn't have access to my savings and needed some money RIGHT NOW for an emergency.
The only thing we have debt for right now is our house and a loan that will be paid off in a couple of months. We have 3 vehicles (none new, but all in good - if not GREAT working order) and we live fairly comfortably all things considered.
PLEASE
take my advice and start an investment envelope. Start setting aside money NOW that will protect your future.Start your own life insurance policy - whole life - get it now, while you're young and it's cheap. This can make a heck of a difference later.
Take a class on how to manage your money. Look into Dave Ramsey. Old people stress this stuff for a reason - usually because we wish we had done it!!!!
Good luck to you.
- Thread starter
- #9
RedneckCowgirl
Power Conserver
I heard about it a while back, but I'm just now getting my first "real" job, and since I have blown through any money I have had in the past super fast, I figured it would be worth a shot. Thank you everyone for the advice!Wifezilla said:
One more question:
For those of you who do use it or have used it in the past, what sections did you have? (like groceries, utilities etc)
gettinaclue
Almost Self-Reliant
One for each bill. (In no particular order)
Mortgage
Electric
Car Insurance
Groceries
Cell phone
House phone
Savings
Investment
TV
Christmas
Birthdays
Gas, cigs, and pocket money
Mad Money
Of course this is flexible. Just add an envelope if you are looking to buy something and save up for it instead of going in debt for it.
You didn't mention if you were living with your parents or not. If you are ...start an "Apartment" envelope. Make sure you figure first and last months rent along with a deposit (this is what many places request back when I was renting) and also any fees that the electic company or other company may charge to set something up in your name. If you aren't sure how much to factor in, call the electric company and water company and the gas company etc. and ask them if there is a fee or deposit of some sort.
Also, if you can, go ahead and start a "CAR" envelope. Even if you have a reliable car now, you'll have to get another one eventually. Now is the time to save for the car you will get later. Put as much as you can in there and try to pay cash for it. You can often get a lower price right of the top buying cars this way. You also save money by not having to pay the interest on the car payment.
Mortgage
Electric
Car Insurance
Groceries
Cell phone
House phone
Savings
Investment
TV
Christmas
Birthdays
Gas, cigs, and pocket money
Mad Money
Of course this is flexible. Just add an envelope if you are looking to buy something and save up for it instead of going in debt for it.
You didn't mention if you were living with your parents or not. If you are ...start an "Apartment" envelope. Make sure you figure first and last months rent along with a deposit (this is what many places request back when I was renting) and also any fees that the electic company or other company may charge to set something up in your name. If you aren't sure how much to factor in, call the electric company and water company and the gas company etc. and ask them if there is a fee or deposit of some sort.
Also, if you can, go ahead and start a "CAR" envelope. Even if you have a reliable car now, you'll have to get another one eventually. Now is the time to save for the car you will get later. Put as much as you can in there and try to pay cash for it. You can often get a lower price right of the top buying cars this way. You also save money by not having to pay the interest on the car payment.
