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How does your envelope/cash system work...

post #1 of 6
Thread Starter 
...if you're check to check? This is probably pretty dumb, but I can't seem to get it off the ground. Do you take out your cash on the first of the month, or do you do it by pay period? Do you split your budget amounts across categories and do another "deposit" later in the month?

I can't seem to get started...not sure why. Any advice? Steps?

post #2 of 6
My hubby gets paid every other Wednesday. I know what bills are going to be due before his next payday, and I write those checks first. Then, I withdraw the grocery $$, the dining out $$ and the church contribution $$ for those 2 weeks. I have to get the cash OUT of the bank because knowing it's in there is BAD for me... we have (had) a serious debit card habit. Then, after next payday, we do the same thing. We try to forget about whatever may still be in the bank and it's nice to finally see a little something adding up in there. My hubby gets a "little" check and a "big" check, alternating, so I've budgeted according to the "little" check and tried to let the leftovers from the "big" check build our account up (and pay off some debt).

post #3 of 6
I'm not quite sure about the envelope system thing but we work with cash exclusively for spending money and DH is paid weekly, I am paid benefits bi-weekly, both are direct deposit. I take trips to the bank weekly to get our cash weekly (used to do it fridays when DH gets paid but am starting to do it mondays when my benefits will be available)

Food and Gas are our only cash expenses if we have anything left over then we might treat ourselves to tim hortons or something like that.
post #4 of 6
Dh gets paid bi-weekly and we take out cash on paydays. I budget for everything we will be needing cash for and take out enough for all of our expenses.

Water, Sewer, Garbage -- City bill
Dd's allowance
Dh's 'allowance'
Dining out
Movie rentals
Going to movies
Misc -- laundry detergent, etc.
post #5 of 6
I take out money on payday.We have 2 envelopes.One is for groceries and one is for everything else that isn't a bill.My husband has all the bills paid or direct paid. I have the same amount every month.This helps me to plan and live well with in the amount. If he gets paid extra or we get extra money from somewhere it does not affect the money I take out. Also there is no personal allowances. We have the one envelope for all things besides food and that is it. I don't have an entertainment fund because then I would spend it whether I needed to or not. It works for us.Someday we will be in a place where we can have more fun but right now we are working toward a goal. It is easier to sacrifice something knowing that there is a greater goal.
post #6 of 6
When I was a single mom, I tried to use the cash/envelpoe system but it didn't really work until I got a month ahead of the bills. Now we save all the income from one month, deposit it just before the next month begins, take out cash for groceries, household things, kid allowances and gasoline (mainly) and leave the rest in checking for monthly bills and another checking for non-monthly bills (like car insurance).

I just couldn't get the envelope system to work week-to-week. Some weeks there wasn't enough to dole out. It helped to switch to a monthly amount to play with. Then if it was overall a bit low, I could average that out and it spread better.
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