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Archive for February, 2008

Envelope Budgeting-Round 2

February 20th, 2008 at 05:32 pm

I just finished using cash envelopes for two weeks, as I mentioned previously. This experiment was really helpful for me. I was much more aware of what I was spending and really thought about things before I let go of the money. I did have a few missteps. I forgot to bring cash with me once, so I resorted to the debit card. I did pull cash out of the envelope in the same amount, though, so that I could keep track of all money spent. I also went to a happy hour after work for a coworker, and used the debit card then as well, because I had no cash.

It was hard for me to remember that I would need to bring cash with me. I am so used to using the debit card for every purchase. I'm sure once I get more used to this, I won't have that problem.

I came in significantly under budget and still had $176 left in the envelopes at the end. I'm using that surplus in this next budget period, meaning I didn't have to pull out as much cash from my account today. Eventually, I'm hoping I can apply the surplus to my savings instead.

So, I'm ready for round 2 starting today.

My Experiment: Envelope Budgeting

February 6th, 2008 at 04:27 pm

It has been a while since I have posted here. I'm trying to put in some extra work while things are busy at both jobs so I can pay off that furniture before my zero rate runs out in May. I've already saved $1000 and need about $500 more.

I have been setting budget limits for myself, but using my debit card instead of cash. I'm finding it much too easy to pull out that card and swipe for stuff I really haven't budgeted for. So, starting today, I'm trying envelope budgeting with cash. I went to the bank after work and pulled out $350 in various denominations. Now I just need to divvy that into my envelopes.

It sounds stupid, but I'm really excited to see how this works for me. I'm hoping this will make me think about things before I buy them. And I hope that at the end of this 2 weeks, I'll have a surplus in the envelopes.