I have used the envelope system for years.  It works great for daily expenses.  I also using my checkbook register to "pay"  the semi-annual bills (car insurance, etc).  I just keep a blank check folded and in the checkbook behing the register.  On payday, I simply write down a date and dollar amount for what the allotment is for that month.  I also subtract it from the register.  When it is time to pay the bill I just add that amount back into the register and pay the bill.  This way, DH and I don't think we have money to spend that is really earmarked for a bill.

Dear Carmina & All, The weekend before the 3rd of the month (my Social Security Disability benefit direct-deposit comes in on the 3rd), I write checks for the rent & to my personal phsician, Peter, after noting the deposit.  I've been doing this since time immemorial. 

I ahve a sspreadsheet budget, & I note each item (pro-rated for expenses that come up less often than monthly) in teh checking registeer, deducting its amount.  Then, as I pay the items as the month goes by (telephone, garbagge bags,, whatever -- I give a box of tall kitchen bags to Jewish Familly & Children's Services each month as they use them up quickly), I void the "place-holder" item taht I had previously entered, deposit that amount, write out the new check, & subtract it froom the register.  This isn't exactly an envelope system but it works well for me.  As you kkkkow, myu groczereies are budgeted according to my SNAP/Food Stamps allotment.  I have tried other systems in teh passt -- this is what I've been doing lately, & it seems like a better system for me.

Yours in Him, Deb

 We follow Dave Ramsey's Total Money Makeover principles. 

We just use freebie paper envelopes from the bank for our envelopes.  Categories are: food, household, toiletries, gasoline, meds, haircuts, blow money. 

The bulk of our income is paid once monthly so we fund our envelopes for the entire month.   This has been a great way to teach us both discipline and accountability to one another. 

Nope, do not ^^; Granted, I am a 19 yr old commuter college student. Living at home, going to private liberal arts college(21k scholarship/4 yrs) So I don't have many areas to cover...

But I cover most everything with debit. If I have cash, it feels like its not recorded at all, and it can disappear straight from my hands in a flash without a second thought. But the idea of having every transaction posted up makes me spend less. If I check often enough, I can watch out on my declining balance, and not spend too much.

I am lucky that my parents are well to do enough to cover my remaining tuition, food, rent, cellphone, car, etc. They encourage me to apply aggressively for engaging internships, and make good networking connections. I sometimes use "my money" to also pick up groceries here and there, or buy cleaning supplies and such. So its kind of that our money all flows together xD

We have started Dave Ramsey's FPU and I am trying the envelope system (again - I have  tried it before).  I have made one decision.  I HATE using cash at the gas station.  Too many people in line buying junk or, even worse, lottery tickets.  I check my online banking access to keep up with everything, so I am going to keep using debit card for gas. 

We are using the cash system for groceries, clothing, personal, entertainment, eating out, and misc.  Groceries are the area that work best with the envelope system, IMHO.

I am a strong believer in the envelope system.  I used it to get out of debt over 15 years ago, but it does take a lot of discipline.  Each week I would put myself on an allowance and remove that money from my checking account in cash.  This money would be used for that week's groceries, gasoline, eating out, haircuts, clothes, etc.  Often I would get to the cashier at the grocery store and tell him/her exactly what I could spend.  This meant that I prioritized the food on the conveyer belt so that when the cashier let me know when my limit was reached, I would leave the remaining food behind.

Fast forward 15 years and I still use this system but now it's been slightly modified.  I'm transitioning my career from a corporate job to a freelance writer.  My goal is to become a full-time writer with multiple clients.

My first long-term assignment is from a company named Mango Money which is a prepaid debit card from MasterCard.  They've asked me to use the card in place of my cash allowance.  There is a definite safety and convenience in carrying plastic which I really like.  And, just like when the cash is gone you can't spend anymore, when the balance on the card is used up, your purchase won't authorize.  I've had to memorize the fee structure of this product just so I'm careful not to get hit with unnecessary fees.  It's been a fun writing assignment! 

I feel a little less confident in my budgeting skills with this new tool simply because it's new to me, but it's nice not to have make an extra trip just to get cash out of the bank.  So, it's the envelope system but using modern tools!

I'm a Dave Ramsey fan too, and I actually did give the envelope system a try for everything except the bills because I have free billpay. i didnt have the willpower to not rob Peter to pay Paul, as it were! I kept borrowing from different categories. I have heard of a cashless envelope system, but am not sure what it is. What I do now is stick with the debit card I've always used. I've also asked DH to start picking up a few things that I need on the way home from work. I'm the kind of person who can need a tube of toothpaste, go into walmart, and spend 40 dollars. ugh... he teases me still about "the 40 dollar tube of toothpaste"!  so the less time I spend in the store, the less I'll buy. He has total willpower and only gets what's on the list. We do a big grocery shop every two weeks and he'll pick up some produce on the way home the following week. Once a month I go and do a big shop for non-food items like laundry soap, cat litter, paper products, etc.  So that's basically my budget system.. a frugaler (is that a word? lol) hubby LOL!

Cheryl:

I have heard of a cashless envelope system, but am not sure what it is.

There are different ways to do a cashless one. One way is to keep a spreadsheet or register for tracking amounts allowed for different things. Another way is to set it up as entries in a register or accounting program like Quicken.

This works for those who use a debit card or checks instead of cash.

Brandy,

Thank you SO much for telling me that! I've been doing a cashless system and didnt even realize it, LOL!!

I read on .. bankrate.com I think (I forget) a while back to keep track of spending for the month to see how much you spend in each category. I got a little ledger type book and wrote on the inside cover my little code system for what we spend things on, because the little boxes on the pages are too small to write "dinner out" "bills" etc. So I wrote, to remind myself.. C for cat related expenses, M for medical and prescriptions, D for dining out, F for grocery type food, G for gas, etc etc.  Then I write the amount spent. I also note deposits in there. The first month I did that it was a real eye opener (and a shock) how much we were spending eating out. I thought we did great because we generally just went out once a week, but I also calculated in the occasional drinks from sonic, starbucks, convenience store candy.. ugh!

Thanks for telling me!!

Cheryl:

Thanks for telling me!!

You are most welcome. We all learn something new as we go.