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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.

Posted in Budget | 9 Comments »

9 Responses to “My Experiment: Envelope Budgeting”

  1. Amanda Says:
    February 6th, 2008 at 04:40 pm

    I want to try the envelope thing, but it hasn't worked so far.

    Starting this week, I am doing it ... good luck to us both!

  2. compulsive debtor Says:
    February 6th, 2008 at 06:11 pm

    I swear by the envelope method. Here's a post where I discuss how I set it up.

  3. JanH Says:
    February 6th, 2008 at 06:34 pm

    Doesn't sound stupid to me! Hope it is a good fit for your budget. Keep us posted.

  4. denisentexas Says:
    February 6th, 2008 at 07:29 pm

    It doesn't sound stupid to me! We started using the envelope system for our business over a month ago and it's working beautifully. We started it for gas, food, entertainment and clothing/laundry expenses on the first of this month and it's working great so far. I am all for it!

  5. reflectionite Says:
    February 6th, 2008 at 10:44 pm

    i use a similar method, but i keep it in my bank account to earn interest. basically i have added up an entire years worth of bills and divided it by 52, then i deposit that amount ($55) into an interest account every week and when i pay a bill, i pay it on the cc and then transfer the money over. i also have direct debits for savings, emergency fund and holidays/gifts which go into separate accounts to earn interest (sort of like envelopes!). the remaining amount each week is for rent, petrol, food and entertainment, for which i use my atm card or withdraw cash and use that Smile

  6. Ima saver Says:
    February 7th, 2008 at 05:19 am

    It has worked for me for 43 years!

  7. merch Says:
    February 7th, 2008 at 06:18 am

    I use mvelopes.com. I am on my 3rd month. So far so good.

  8. scfr Says:
    February 7th, 2008 at 06:19 am

    Doesn't sound stupid to me either! Sure hope it works out for you.

  9. debtfreeme Says:
    February 7th, 2008 at 11:40 am

    it works for me for the past two years.

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