Oops, I didn't know you were spending that...
Budgeting is so hard! Especially if communication with your spouse before purchases is not high on your to do list…. When two people have debit cards or credit
cards attached to the same account, it can be difficult to stick to your budget. There are many tips and tricks and resources, but this is a great option as well… I like to call it Envelope Budgeting… Side note- Dave Ramsey has a great lesson on this technique if you would like a more professional money manager to walk you through this process!
What is envelope budgeting, you ask? Well… envelope budgeting is when you have an envelope for each expense, labeled with the bill title, due date and amount. You decide which income sources go to which bill and as that income becomes available (pay days),
you take out that money and put it in the envelope. Once all your bills have money allocated to them, what’s left in the account is for fun.
Now- I highly suggest you OVER budget if possible, and you set aside an emergency envelope too. This does take a little discipline and must be kept out of reach of children… Especially if you have older kids always looking for a little shopping money. Cash is tempting… BUT- this budgeting tool makes it easy to KNOW you have all the money you need for your bills, and what is available for leisure spending.
What if my bills auto pull? Well two options here. You can be sure to deposit the money again before the due date- but you have to be sure both spouses know it’s for the upcoming bill, and
it's kind of annoying to put it back. OR you can setup a second account that you do not have cards for and put all the envelope money in that account. Change your auto bill pay to come from that account. It is the same process and separate from your traditional bank account.
This technique really helped me understand budgeting when I was first figuring it out. It also helped us see where we could cut back to save more and also create a fun shopping and entertainment budget! Happy Budgeting Mama… Never forget…. You are worth it! Together, We will Rise from the Laundry Pile!