Duh Duh DUH… the dreaded B word. Just kidding I love budgeting. Hubby and I just sat down and created a new spreadsheet budget and revamped our envelopes because it is time to get serious! We created a few goals for ourselves and have a new business venture we want to embark on but need to get this debt cleared first!
You guys, in the first two years of our marriage we were able to pay off $20,000 of debt by using the snow ball and envelope system! I know we can tackle the $19,321.14 we have now! But man it takes dedication, determination and to be honest creativity. Living life on a budget is not living life less than everyone else and I am going to document our journey here to prove it to you. And as much as I feel strapped down by our debt and can’t wait for that financial freedom I do feel like I have control over our money.
That control comes in the form of envelopes… Every week I go to the bank (seriously the people at my bank know me by name and I love them) and pull out almost all of the money that has been deposited for that pay period, except for $50 just incase something we aren’t expecting comes out of the account we aren’t out a overdraft fee. I then turn around and go home to distribute it as budgeted to the associated envelopes. For example our food budget is $100 per week so the food envelope gets $200- hubby gets paid every two weeks.
I pay most of the bills out of our account through the online app our credit union offers, which means I am at the bank depositing or withdrawing money every week. The bills that I don’t pay online or through the app I pay with a cashiers check that I get from the bank at no charge. I don’t like checks because of the possibility of error and then over draft that can happen when you don’t pay close attention. I don’t mind it at all and this is what has worked for us. I am not going to lie it is work and takes dedication but it is what works for us. If you don’t have control of your money… well you don’t have control of your money haha. Using the envelope system and the debt snowball has worked for us in the past and will work for us again!
Over the years I have been drawn to other ways of budgeting and have tried different options- I’ve tried the multiple checking account strategy, which is basically the same thing as the envelopes you just shuffle money around the bank, and the list goes on. I am just someone who has to have money in hand and then store it away so it is not easily accessible. I lack self-discipline when it comes to cash flow- at least I can admit it right?
What I do is not fancy, its not pretty but to be honest doesn’t take much skill but it works for us and that’s all that matters. There are some super cute envelope system wallets out there I am just cheap and don’t want to spent the money! I plan on writing a series on our journey of tackling our debt as it goes. I am attaching our July budget spreadsheet below take a look, at the end of the month I plan on sharing how exactly we did with sticking to it!
In addition to all of this I just wanted to include that both Jas and I are in every financial decision together. Even though I am the one who does all the budgeting, bill pay etc he is up-to-date on everything. We plan to go over the budget before every paycheck so we are on the same page and he doesn’t turn to me and say what happened with this money …. etc. etc. This is so important! After all- team work makes the dream work. Am I right!?
We had a total budget victory today. We were able to put an additional $500 towards the debt we are currently snowballing which means it’s July 6th and we have contributed $650! Starting total was $3,993.41 now $3,349.60.
What works for you? I have always found it so helpful to read other peoples stories and gleen a little here and a little there. So hit us with yours!