Does anyone use, or has anyone used the jar or envelope method of budgeting? (ie. putting a set amount into a 'food' 'gas' etc., jar every week or month)
Did/do you find it successful? Did you cheat, and just use debit or credit once the jar runs out?
I am desperate to cut down on our misc spending. We have a large amount of 'extra' or 'leftover' money every month, and we just end up spending it on nothing!
My loose plan is to try to stick to a budget and roll over any 'extra' money at the end of the month into our TFSA. I am hopeful that using the jar method might help, since we can see the money disappearing as we spend it.
Anybody have any advice / btdt / plans they use? If you do use the jars, what catagories do you use?
Allocate some of that extra money (but not all of it, just start w/ a small amount) to the TFSA or some other budget category and pay it at the beginning of the month. With the rest, allow for some overflow. I budgeted the left over money in my account for clothing, hair, food splurge, etc
I use the envelop method in theory. The money is left in a bank account, but its listed on my spreadsheet as "envelop" ... for expenses that are paid quarterly or not so often (vet,insurance,dentist)
I use the envelope method and I do find it helps me keep my spending in check. I use it for groceries, clothing, and misc. I found it was easier to use my debit card to pay at the pump at a gas station so I wasn't tempted by the junk food there. I made myself a little fabric pouch with 3 zippered areas to put money from food (biggest category), then clothing, and misc. Sometimes I take money from the misc pouch to pay for food, but at least it keeps that spending in check. I also have a pad of paper for list making and a calculator to add up cost while in the grocery store so I stay within my budgeted amount.
There are other people that use this method over on the "Getting Out of Debt in September 2012" that might also be able to give you some encouragement to keep at spending in this way.