Saturday, June 14, 2014

envelope time!

Yesterday was pay day, know what that means? Time to start this envelope budget! Woop, isn't that exciting? My co-worker made us a spreadsheet for our budgets and I forgot to send it to my personal email so I can't upload an image of it. I did for some reason print a copy of the budget so I can upload a picture of the printed document. Hahaha! 

So at the top in the middle column it says "Paycheck 1" and the one next to it that is too dark to read it says "Paycheck 2." I sat down one day and figured out my "bare bones" paycheck. The amount came out to $713.06, that number is (40 hours only, no overtime or bonuses) after taxes and after taking out health, vision and dental insurance and my 6% to my 401k. So at the top you see that number and then you see the amount of my actual paycheck and then the difference of the two. The plan was to do this bi-weekly and it should still work that way but there are obviously some things that we don't need to pay with each check so we adjusted the budget to account for that. Ex: it says my cell phone budget is $50 when really it is $100 but I actually make a payment on the cell phone with every check, the same goes for my car insurance. (Also just so we are clear my cell phone bill is NOT that high, but like I've mentioned before if I pay extra then I have a credit for the next bill)

I have a total of 13 categories but I only have 10 envelopes (my car loan, savings account transfer and Discover bill are all done online). Each envelope has a register sheet in it so that I can keep track of where I spend the money that is in whichever envelope. I do plan on rounding UP to the nearest dollar just because I don't want a bunch of change in the envelopes, so I have a coin purse that I'll keep all my coins in. I took the $217.06 (which was the difference of my actual paycheck and my budget amount) and put that in my checking account for safe keeping. At the end of this first 2 weeks I'm not sure if I want to take the cash that is left over in the envelopes and put that towards my debt or if I want to leave it in each envelope and then add less cash to them with my next check. Any suggestions on that would be wonderful. 

Hope this system works out well for me!

These are my envelopes!


  1. Good luck with the envelope system. I've heard that it works for some people so it's worth a try!

  2. I keep the extra in the envelopes at the end of the month (in your case at the end of your pay period) and just roll it over. I still put in the same amount the next time, so the total in that category has grown. Example: I put $120 for groceries. I spend $100. I leave the extra $20 and still add $120 the next month, now I have $140. This works for me as some months I have to "stock up" on things like meat, etc.