if you use an envelope system, what do you do with the 'leftovers'

[mrstice]

This month we have really gotten hardcore with our budgeting, and are using an envelope system for a lot of things. I'm wondering what to do with the 'leftovers' in envelopes at the end of the month.

I'm planning on just keeping some of the cash in there to let it add up until needed (such as our gifts envelope, and doctor/dentist, etc.), but what about our 'eating out' envelope, or any blow money?

Do you just keep it in the envelope and get 'extra' the next month, or do you put it in savings, or add it to your snowball?

Obviously if there are certain envelopes that consistently have leftover money, I will readjust our budget.

[larablue]

I would keep in a separate envelope, for use if you happen to need something more next month.

So you could buy the nice sweater or another ice-cream or whatever with the children.. if you adjust the budget- you won have many leftovers, anyway.

If you feel more hardcore than I do I would put it into savings.

[Carson]

I leave the money in that envelope and just don't get as much cash out to fill it up for the next month.  That means more money left in my account and what I do with that 'savings' depends on what we have going on. 

Because I record how much cash goes to what envelopes, that helps me keep an accurate eye on my spending.  eg, if I have $50 left in the grocery envelope, if I went and bought a sweater with it, that would skew our grocery/clothing budget.  So i prefer to leave the envelope items alone.

[Usually Curious]

IDK, I've never had extra leftover.

[Denvergirlie]

I let mine roll over for a few months. That way if I find a good sale or the like, I can stock up on other things. Once it gets to a larger roll over amount, then I pull it and send to savings.

[redvlagrl]

I leave it in the respective envelopes, like saving for things. For example, we put $50 a month into our home repairs env but do not use any of it some months. Then when I want to do a home improvement project there might be $150 in there which will buy enough paint for example. Last month there was $100 in it and a great deal on a piece of used furniture came up so i bought it with that.

We also have a 'snowball' envelope into which goes any extra earnings (selling things, unexpected monies). We then use that for unexpected small expenses like going out to lunch (which we don't budget for generally - it comes from our blow money).

We can do whatever we like with the blow money, hoard or spend.

[eirual]

Originally Posted by Carson 

I leave the money in that envelope and just don't get as much cash out to fill it up for the next month.  That means more money left in my account and what I do with that 'savings' depends on what we have going on. 

Because I record how much cash goes to what envelopes, that helps me keep an accurate eye on my spending.  eg, if I have $50 left in the grocery envelope, if I went and bought a sweater with it, that would skew our grocery/clothing budget.  So i prefer to leave the envelope items alone.

.....without the hardcore tracking....
 

[Purple*Lotus]

I also leave it in there and just do not take out as much money to refill it the next month.  This happens with my gas money a lot.  I allow a certain amount to cover me for things like needing to drive more to go to the doctor in another town, etc.  So I usually have about $20 left over in it each month.  So that is $20 less that I have to take out to refill it.

[BetsyS]

I've never had leftover money in blow money, groceries, eating out, or household (which is a category that encompasses light bulbs to gardening supplies to a new pillow for us).  In those categories, I could spend as much as you give me.  LOL

In other categories, I let it roll over.  For things like car repair, gifts, clothing, I find it all evens out in the end.  I tend to budget based on a yearly view divided by 12, though, so that's why.  (For instance, I put away a certain amount monthly for clothing, knowing that we really only spend it twice a year, at the change of seasons).

[cheryljill]

I don't mean to derail this conversation, but can someone tell me more about how an envelope system works? Or how to set one up? I am in serious need of a budget that I can put in place this year and this sounds like it would work for my family... Feel free to send me a private message. 

Thanks!

[Maiasaura]

Originally Posted by cheryljill 

I don't mean to derail this conversation, but can someone tell me more about how an envelope system works? Or how to set one up? I am in serious need of a budget that I can put in place this year and this sounds like it would work for my family... Feel free to send me a private message. 

Thanks!

This. I'm new here, too, and I srsly need a budget and how to stick to one. I heard of this envelope thing when the United Way people tried to help me with budgeting, but they don't really let you have weekly meetings and I need that to keep accountable. They just tell you how and send you on your way. My grocery/household/misc. spending gets way out of hand, but I did really well with the gasoline yesterday-- I allow $40/week and it was going to take more than that to fill the tank and I just stopped it at $40 and I hope that'll get me by till next Sunday. I'm trying! Cheryljill, I want to hear the answers too. Maybe we can move this to a new thread if it derails the original topic.

[RainbowTurtle]

Originally Posted by cheryljill 

I don't mean to derail this conversation, but can someone tell me more about how an envelope system works? Or how to set one up? I am in serious need of a budget that I can put in place this year and this sounds like it would work for my family... Feel free to send me a private message. 

Thanks!

The only one I can think of off-hand is Gail Vaz-Oxlade's ('Til Debt Do Us Part) site has a budget worksheet that figures it all out for you:  http://gailvazoxlade.com/resources/interactive_budget_worksheet.html.  I'm not sure what everyone else uses...

[mnnice]

Originally Posted by Purple*Lotus 

I also leave it in there and just do not take out as much money to refill it the next month.  This happens with my gas money a lot.  I allow a certain amount to cover me for things like needing to drive more to go to the doctor in another town, etc.  So I usually have about $20 left over in it each month.  So that is $20 less that I have to take out to refill it.

I think for things that gas or other things that are more consumed and that makes sense. 

If you budget for clothes/shoes or household stuff like bedding or kitchen tools you could easily go several months without spending anythings and then spend a bunch all at once.  I know if DH or I buy a new pair of shoes or boots we can easily exceed what the monthly average would be in that area with a single purchase.  I also know that we both buy one, maybe two pairs per year.  Things like that I would just save the amount and add then next on.
 

[Purple*Lotus]

Originally Posted by mnnice 

Originally Posted by Purple*Lotus 

I also leave it in there and just do not take out as much money to refill it the next month.  This happens with my gas money a lot.  I allow a certain amount to cover me for things like needing to drive more to go to the doctor in another town, etc.  So I usually have about $20 left over in it each month.  So that is $20 less that I have to take out to refill it.

I think for things that gas or other things that are more consumed and that makes sense. 

If you budget for clothes/shoes or household stuff like bedding or kitchen tools you could easily go several months without spending anythings and then spend a bunch all at once.  I know if DH or I buy a new pair of shoes or boots we can easily exceed what the monthly average would be in that area with a single purchase.  I also know that we both buy one, maybe two pairs per year.  Things like that I would just save the amount and add then next on.
 

Right.  Usually my gas, grocery, entertainment and eating out envelopes have a little leftover.  For my Medical and Car envelopes, I always roll it over.  Just because I might not need the budgeted medical amount this month, doesn't mean I wont use all of the roll over the next month.
 

[phathui5]

I would keep it in the envelopes for times when you need more in that category.