Envelope System for Budgeting

We have decided that we are spending too much money 'here and there'. Well, actually I decided. LOL. Although my husband does agree we are getting low on money. A few bucks a day really add up.

So, we have decided to start the envelope system for our expenses. These would only be for things like groceries, gas and we have a miscellaneous category. All our bills (except rent) are automatically sent out each month. If you haven't heard about the envelope system it is a way to budget your money where you have envelopes marked with each expense. You put the amount you have budgeted for the week (or month) in cash in the envelope and when the money is gone, it's gone. Dealing with cash helps people because they can actually 'see' how much money they have. With a debit card or even a check, you sometimes don't realize how much you really are spending until later.

We will be putting $50 a week in the envelope for gas (this is a little high but if the price keeps going up, we may be up to $50 to fill our tank again soon), $60 a week for food and $20 a week for miscellaneous. I am hoping that this will curb all the extra spending on coffee at the gas station and other spending.

How do you manage your money? Do you have any tips on budgeting or how you keep your spending now? Leave a comment for me and let me know.