hjffkj Posted April 25, 2014 Share Posted April 25, 2014 Anyone use/tried to use an envelope system for budgeting? Has it helped you control your spending? What was the most difficult thing about implementing it? If you tried it and didn't like it what didn't you like about it? Lately, I have been terrible about spending needlessly and my once great budget system doesn't work anymore since swiping a card is just so easy to do. I need to do something because we're wasting so much money that could be going to our car fund. I'm considering starting the envelope system in May. Quote Link to comment Share on other sites More sharing options...
rwjx2khsmj Posted April 25, 2014 Share Posted April 25, 2014 We did it to get out of debt. I hated it but saw the value. We don't do it now but would probably be further in our savings goals if we did. Quote Link to comment Share on other sites More sharing options...
Shellie Posted April 25, 2014 Share Posted April 25, 2014 Yes. Same as the above poster. I disliked it, but it works. The hardest thing is when you're at Walmart and spending from the clothing budget and the food budget and you have to figure it all out either before you get to the register or when you get home. Other than that, it really isn't hard, just takes a little planning, and telling the bank teller "I want 3 $20s, two $10s and 5 $5s." LOL Quote Link to comment Share on other sites More sharing options...
hjffkj Posted April 25, 2014 Author Share Posted April 25, 2014 We did it to get out of debt. I hated it but saw the value. We don't do it now but would probably be further in our savings goals if we did. Our only debt is the mortgage luckily. We'd be doing it mainly for the savings aspect. Essentially, I need to come up with a bare bones budget so as much money can go into savings for a bigger vehicle. We have 3 kids all in car seat in a 5 seated car. Once our youngest outgrows his non comvertible car seat we will need a bigger vehicle. That give us about 6 months to save. I'd like to get as much saved so I can avoid a car loan or have it be a very small amount. Right now I think the envelope system may be the answer. Quote Link to comment Share on other sites More sharing options...
rwjx2khsmj Posted April 25, 2014 Share Posted April 25, 2014 Our only debt is the mortgage luckily. We'd be doing it mainly for the savings aspect. Essentially, I need to come up with a bare bones budget so as much money can go into savings for a bigger vehicle. We have 3 kids all in car seat in a 5 seated car. Once our youngest outgrows his non comvertible car seat we will need a bigger vehicle. That give us about 6 months to save. I'd like to get as much saved so I can avoid a car loan or have it be a very small amount. Right now I think the envelope system may be the answer. It forces discipline. If you hate the idea, having an automatic withdrawal from your pay to a savings account not linked to your checking account is also a good option. Quote Link to comment Share on other sites More sharing options...
hjffkj Posted April 25, 2014 Author Share Posted April 25, 2014 It forces discipline. If you hate the idea, having an automatic withdrawal from your pay to a savings account not linked to your checking account is also a good option. Oh I have that set up too. Every paycheck, biweekly, 200 goes into savings. It works great! The only problem is the stress of seeing the small bank account towards the end of the month because I was careless with spending throughout the month. So I'm hoping this will teach discipline in that area. Quote Link to comment Share on other sites More sharing options...
Aiden Posted April 25, 2014 Share Posted April 25, 2014 We use a combination of the envelope system for cash purchases and budgeting software (YNAB) for online/debit card purchases. But we don't have access to Wal-Mart or other similar stores, really, so the supermarket is just groceries, and most other things are online purchases where we split the purchase in YNAB. I love our system. It helped us get out of debt, it's helped us stay out of debt, it allows me to really see where our money is going and make adjustments as needed. We save a large portion of our income--for a future house, retirement, our daughter's college fund, vacations, Christmas gifts, next year's insurance premiums. But I will admit ... I loved using envelopes a lot less when there was the Wal-Mart factor. Now the closest we have to that is Amazon, but since we're shopping online from home, I have plenty of time to check my virtual "envelopes" (budget categories) in YNAB and record everything without having to find a corner of the store to add up purchase prices from different categories and pull out cash from each envelope. I think when we move back to the US, I'll have to create a budget category that simply is "Big Box Store" (including Target, Wal-Mart, Costco ...) rather than trying to divide my purchases among toiletries, clothes, groceries, whatever else. I guess I do something similar now, in that "Supermarket" actually includes money for groceries and cleaning supplies, and "Amazon Subscribe'n'Save" includes some grocery items, diapers, paper products, etc. The key is to figure out the categories that will work for you. That takes time, but it's well worth it. Good luck with whatever you decide to do! Quote Link to comment Share on other sites More sharing options...
hjffkj Posted April 25, 2014 Author Share Posted April 25, 2014 Yes. Same as the above poster. I disliked it, but it works. The hardest thing is when you're at Walmart and spending from the clothing budget and the food budget and you have to figure it all out either before you get to the register or when you get home. Other than that, it really isn't hard, just takes a little planning, and telling the bank teller "I want 3 $20s, two $10s and 5 $5s." LOL Hmm I had not thought about shopping at places that have groceries and clothes. I generally don't do that but have been known to on occasion. Thank you for making me aware of that particular issue! Quote Link to comment Share on other sites More sharing options...
Soapy Posted April 25, 2014 Share Posted April 25, 2014 We did it for a while. I hated it too, but it did work. I use Mint.com and the Mint app for all my budgeting now. It works really well for me, but I check it over all the time. DH and I talk it over frequently throughout the month too and make sure that we are on the same page for all the categories. It's working well for us in conjunction with automatic savings transfers from paychecks. Quote Link to comment Share on other sites More sharing options...
walkermamaof4 Posted April 25, 2014 Share Posted April 25, 2014 Best thing we've ever done for our budget is YNAB. We loaded it to my Phone, my computer, my husbands phone, his computer. All are synced live. When we purchase anything and everything, online or in stores, we immediately enter it. It subtracts it from the budget category and the account too, just like envelopes. And you can split transactions between categories. Every month you "reload" categories with any money you have in your accounts. It is the envelope system basically. It is changing our lives for the better month by month. Quote Link to comment Share on other sites More sharing options...
SemiSweet Posted April 25, 2014 Share Posted April 25, 2014 We use an "envelope system" app because we purchase EVERYTHING on a credit card that gives us miles (which has paid off big time for us). The system helps us save when we are diligent about sticking to it, which is not always, unfortunately. It's a pain to remember to log everything, though I'd much prefer it over cash, cash seems very cumbersome to me and I'd prefer not to haul around a bunch of actual envelopes. Quote Link to comment Share on other sites More sharing options...
Slache Posted April 25, 2014 Share Posted April 25, 2014 Yes. It worked. Also call your insurance companies, internet/cable/phone company, and cell phone company to see if you can get your rates lowered, and your credit cards to see if you can get your interest lowered. I do this once a year and always get at least one yes. Quote Link to comment Share on other sites More sharing options...
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