A few months ago I wrote about how I was utterly failing with my cash envelopes budgeting. I was spending my “envelopes” willy-nilly all over town and not for what they were intended. So I had to stop, collaborate and listen…(gotcha)
What I had to do was trick myself. Why? Because, I spend money like a drunken virgin sailor on his first shore leave (there’s an image for ya!). I went back to basics (again) with a bit of a twist. The categories remain the same but a couple of the accounts I had to treat as mini-savings.
Here is my quirky plan of attack!
Let’s start with Car Maintenance. I estimate that it will take about $600 per year to maintain my car (that includes a new battery, tire repair, & oil changes). On the envelope, I wrote down $600. Each time I deposit a contribution to the envelope it is marked as a negative and when something is spent, it is marked as a positive. Make sense? The goal is always maintain at least $600, so if I am building it as a mini-savings any contribution will mean I am that much closer to the goal of $600. (I said it was quirky!)
Another strategy was applied to the gift giving envelope. My yearly goal is $480 for birthdays and some Christmas pre-purchasing. Each month, I set aside $40 dollars which is then automatically withdrawn to an American Express pre-paid card. This allows me to make secured purchases on-line and the money is not in my hands so-to-speak.
The remaining envelopes are for items that I budgeted out for each month like for Pets, Nails, etc. I keep the cash amount in the envelope and any receipts for purchases. If there is any remaining money, it will roll into the next month. I will, however, make concessions. Such as, if I didn’t spend my money from the craft envelope, I will then pass that money onto another envelope like Thrifting. If it’s not spent, it will roll over to the next month. (yea, I go through the thrifting envelope pretty quickly).
It’s a crazy convoluted plan but it is working for me thus far and money is being saved which is the ultimate goal!
What would you suggest for my quirky plan of attack?
Oh and I had to share!! I recently made cash envelopes to fit a pocket sized filofax…see the tut below!