Cash Envelope System
Alright party people. This month I began with a new adventure. I have seen people all over doing cash envelope system and I decided to try it out.
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This month is probably the worst month to start this as I had to get tickets for my mom for one of her bucket list items. Also one of our roommates ended up bailing on us so I am having to pay extra rent this month. But! I thrive under stress so lets GO!
I started off small and as I go along I will add more money along with more categories as I find I need them. At the moment I have 20 categories that I have broken down into 2 sections
Wallet- AKA weekly use and Sinking Funds AKA Oh crap money
I started using a Excel spreadsheet to divide them up and keep track. It looks a little something like this
On the left I have my categories broken up into the 2 sections by color. The next column is the amount I want to save up in the category. Once I reach this goal I can decide to keep putting money in or allocate the money to another category. The next column is how much I would like to put in monthly. obviously some moths it will be less or more depending on how much extra I have a month. The 4th column is how much per check I need to put in to reach my monthly goal. The rest are the monthly totals. As I add money I will update the totals.
As you can see There are some that I wasn't able to put money into this check along with adding some extra to others. Amazon, Fun and Food are low or zero because I had already put the money on my card before hand. Others like Medical and Rent I didn't have the extra cash this check so it will come out of the next one. Also because I may have to be paying extra rent this month I may pull from other envelopes (Big no no) and make it up next month.
I did end up getting a Binder for my sinking funds. I do not like how the little envelopes are in it so I will be replacing them but for now they work and I will be using them till they fall apart.
I did do my budget for the second half of October and I will have to pull money out of the first envelopes. So I will be restarting them completely in November.
I will keep you all updated on my progress!
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