quote:
Okay - we're not on the same page - we still pay online. There are rigid budget line items - if it is on the budget, we can pay it through bill pay or whatever.

It's the Wal-Mart money and the yearly stuff that is difficult to nail down that we go envelopes and cash. I save up my continuing education money, professional dues, etc., when that bill comes due, I write a check and deposit the money. It's literally a cash accounting system for certain things.

Misc for eating out or paying something not formally budgeted gets an envelope. Auto maintenance gets an envelope.

I don't do an envelope for things like gas, water, electricity, etc., but we do pay those and turn them around as soon as they come in. Anything that can be paid online is paid online.

But the key is that budget - budget every penny in and every penny out and you'll be surprised at how much cash you can keep from bleeding out of the account every month - it's several hundred dollars for most people, particularly if they are not strict budgeters and thrifty to begin with.

Got you.. Yea I don't budget obviously, and I need to start.

I have direct deposit, would you figure what bills will come due during that pay period, and just leave that money in the bank (maybe a little cushion) and withdraw the rest for the envelopes?

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Posted by Croacka

Denham Springs

Member since Dec 2008

61441 posts

Posted on 3/19/15 at 2:24 pm to craig8sm

I use Mint for my monthly budgets

It requires more discipline because you aren't using the envelopes imo

I also put almost all purchases and expenses on credit cards which I know Dave wouldn't allow

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Posted by Ace Midnight

Between sanity and madness

Member since Dec 2006

89765 posts

Posted on 3/19/15 at 2:40 pm to craig8sm

quote:
Yea I don't budget obviously, and I need to start.

Absolutely. And I used to "budget" but it was very casual.

Don't do that. Budget down to the dollar, but allow reasonable tolerances.

quote:
withdraw the rest for the envelopes?

Yeah - you'll fight the plan on paper and execute it with the envelopes, bill pay and check.

You have to make debit card and credit card purchases forbidden - with exceptions of course - you have to book travel with some form of credit instrument, but that has to be budgeted.

And if it is not on the budget, you have to find it in your miscellaneous or, last resort, emergency fund. And an emergency is a life, limb or keep your job - everything else is suspended until that situation is stabilized.

I just found the savings in draconian budgeting to be worth the entire process. It isn't the only way, but it is a solid system.

The min/maxers will tell you to leverage money at below cost (like mortgages) - but people actually doing that already don't need the discipline of the babysteps, honestly. And it isn't as much money as they think. They value housing at $0, other than equity growth or a credit line to tap and that simply isn't true.

But, the min/maxers will do better over time - particularly a longer time, but they're not in a budget or consumer credit crisis, either.

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