I have taken an odd approach to managing the expenses. First I listed our set and budgeted expenses and then divided by four. Each week, I try to put the budgeted amount into the different categories. I suppose this is much like the envelope system but it's all in the checking account while I use Quicken to track the numbers.
My husband's pay can vary based on the work that is given to him as he is paid by the jobs completed.
Applying money to budgeted amounts follows these priorities:
- Rent
- Fuel
- Food
- Utilities
- Savings
- Other expenses, both necessary things like additional work expenses and adjustable extras like entertainment, clothes, gifts
If he makes under $400 in a week- I just put as much into rent as I can and we rely on funds already in the categories to make it that week. Basically this is spending our savings.
If he makes $400 in a week- I can fully fund the rent category that week and put as much into fuel as I can.
If he makes $600 in a week- I can fund rent, fuel and food.
On $800- I fund rent, fuel, food and utilities.
On $1000- rent, fuel, food, utilities and the additional expenses are all funded with their weekly amounts. $40 goes into the savings account.
More than $1,000 in a week and I divide everything over $1,000 into different areas- 10% goes into savings and 10% goes to having spending money. With the remainder I begin adding to the categories that are overlooked when checks are smaller. This is really done on a needs basis. For example if I know my husband will soon need $300 for supplies but we only have $180 aside for that, I need to get that up to $300.
This may sound confusing but so far it's working better for us. We both know where the money is going and how much is available for particular things. I also have less stress about what to do with small checks or what to do with the larger checks. I just follow the formula.
