Have money, will spend. (Budget Envelope Introduction)

Part of my organization and clean-up is my financials. I keep telling myself that I’ll go pull out money for this and that when I get a chance, and next thing I know… POOF! The money seems to have vanished. Am I the only one this happens to?

Didn’t think so ;).

There are two “worst parts” to this for me personally, number one… it makes no difference if it’s $500 or $5000, if it sits in the bank account, it’ll be gone before the next pay. Secondly, it doesn’t seem like we’re living a much more enriched life or anything if I spend it as opposed to bank it away. At least if we had a ton of awesome stuff to enjoy it would feel slightly more acceptable… but we don’t.

So now that we’ve wasted some money over the past few weeks, I’ve decided it was really time for a change. I want to be able to save more for the more important things in life! My dreams include travelling with my children, going out to places you dream about… I would love to see Australia and New Zealand one day. So, now what I’ve done is gone over my expenses and come up with these envelopes. I made them all from my random scrapbooking paper, because beautiful things make me happy, and at the end of the day, if it’s pretty I am more likely to use it. I know, I know, it’s stupid… but… why not?

wpid-20130715_150646.jpg

There are seven envelopes:
Gas 1
Gas 2
Groceries 1
Groceries 2
Bills
Mastercard
Extras
(Others you might want to include would be Rent/Mortgage, each separate bill, Children’s activity fund, or gym/classes fund)

These are our regular monthly expenses and it just about covers everything. Because of pay days, we get paid once a week, however, we tend to focus on a bi-weekly system. What I want to work down to is filling the envelopes once with the first pay of the month, and top them up throughout the month if absolutely necessary. This method will get the money out of my easy access, since I’ll no longer be able to simply swipe a card with seemingly endless possibilities. It makes sure that we’ve covered our basics (not that we’ve ever been in such a bad position that we couldn’t, I enjoy spending money… but I’m not THAT compulsive). Also, taking the money out means more will go directly into our savings, which is ALWAYS a good thing.
Beginning next month, I’m also going to start tracking receipts and transactions so that I can get a clearer image of what exactly it is that I’m spending money on and I can adjust my budget accordingly. My guess for the big money drain? Junk food. It’s time we started going full out grocery shopping again so that we don’t need to make a trip to the store every night to get supper. This is awful for so many reasons! But mainly in this instance I’m talking about the budget reason. I can usually feed this household three meals a day, for seven days (at least 3 adults and two children) for less than $200 a week. Usually, it’s more like $160. I hear that that’s nearly impossible, but with healthy, whole foods, I can do it all the time. All I need is the motivation to sit down and fully prepare a list. This is starting again now, due to this budget. I refuse to waste hard-earned money on crap food, which is just pushing me further away from both my health goals, as well as the financial goals I’m now coming up with!

The other plan I’m implementing with these envelopes is to pay my bills ON PAY DAY. I write down the exact amount I need to pay on each bill directly on my calendar located in my planner. On pay day, I just write “Pay bills” on the morning of to remind myself to look. This way I don’t have to look up all of my bills online and figure out how much I have to pay here and how much there, it’s all right there, no excuses. This way my bills are sure to be paid perfectly on time. I’m strongly considering putting aside an “emergency” fund as well, this way I could use it for things like replacing my windshield, instead of having to use either savings or having larger sums taken out of my pays.

Alright, well… I’m off to do a little more budgeting work to get this all figured out so that I can implement it next month. Should be including new meal plans too, since I’ll be making them myself!

Remember, if you don’t like the way you’re living… Change it!
Barb

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