I think this might work for me, but I need to get dh on board. Do you use a virtual envelope system or use "real" cash?

Any other tips from those who use the system would be great!

I can't give any tips sorry, just wanted to say that I have literally just started using this system!
Although, I only need 3 envelopes (1 for petrol, 1 for our food & 1 for the animals food) because all our bills are paid by direct debit :D

Virtual :)

I have a sticky on my desktop (since I'm on here every day) and I check the bank - reconcile the budget - and just keep it all divided by category. If something is an authorization (ie. gas) I write it down.

Once it has cleared the bank, I update.

So, for example:


$300 - groceries
$150 - gas
$ 50 entertainment

Then, you go grocery shopping and spend $150, fill up the tank which authorizes for $1, and spend $3 at the Redbox machine for family movie night and pick up $10 in little caesar's pizzas. Mine would look like this

$150 groceries
$150 gas (- $ 49 auth)
$37 entertainment

Hmm. I am just starting this too. I was going to use actual cash, but I think I will only do that for some things--groceries/allowance.


Thanks for showing how you do this virtually!

I'm using a variation on this idea. We don't do cash since I don't carry cash- we do everything on our Amex and pay off each month (plus we earn cash back and such). I have an envelope in my purse that has our budget printout on it. I have columns with the things in our budget that I control (Food, clothing, homeschool, Household and Misc). Everytime I buy something I put the reciept in the envelope and I deduct the total from the appropriate column- I always have a running total of what is available and I have all the reciepts from each month together. I mark the envelope on the outside with the month/year and I get out a new envelope each month and print out a new budget form.

So far this is working well for us,
Sarah

We do. (have for a couple years now)

All cash for the envelopes. Our 4 envelopes are: Fuel, Food, Toilitries/Household, Tithing.

I do pay monthly bills (like electricity, phone etc....) via debit or I mail a check.

I don't carry around the entire months cash all the time. I have envelopes in my purse (fuel, food, toilitries/household) that I "re-fill" from the envelopes I always leave at home that hold our monthly cash. I use plain white envelopes....nothing fancy.

Edited to add that with the concerns with debit cards (Readers Digest), I don't feel comfortable using a virtual system. Anyone who has had trouble with plastic in the past....I do not recommend using credit cards or even debit cards until you know you are broken of the desire to overspend or are tempted in any way, shape, or form.

HTH,

Michelle