Oh Oh. I've Got Too Many Bills.by Michelle Vandepas | More from this Blogger 09 Dec 2006 05:11 PM
We have to go on a budget. Hubby and I have been married a long time. Twenty five years in fact, and we've talked a good talk about budgets. Every few years we would sit down together and actually write one out, but then something important comes up. Like a new outfit for a wedding or new bike shoes for hubby. We'd spend the cash and laugh about how we aren't any good at budgeting. This time we are committed to paying off our huge debt - and quickly. So we've taken some old fashioned Grandmotherly advice and gone to the envelope system. (You may have heard about this archaic, incredibly old fashioned way of using your money). You only spend what you have. Every two weeks, Hubby gets his paycheck and I go down to the bank with a specific plan to spend the check. I cash the check and put all the money into envelopes, which are already pre-spent - at least in our minds, and on paper. No check writing. No credit cards. We are spending cash while we are out and about. Other miscellaneous bills are taken directly from our account. Did I mention; No credit cards? No more overspending. After all, we are on a budget. Here's how a typical week might go. $75.00 for grocery money $100.00 for utilities (once a month) $50.00 for gas (two vehicles) $0.00 for household (yep that says 0) $25.00 for lunches for two people (Hot Dogs here we come!) $10.00 for entertainment. (Those early daytime movies are looking pretty good right now!) And so it goes until the whole paycheck is divided up and put into envelopes for spending. A big chunk goes right into the debt reduction plan. Each time I need to go to the store, or to get gas, the money comes from the envelope. When the envelope is spent, well, you get the idea; the money is..... g o n e. This means watching how much cash I spend on ice cream and how much on vegetables. Maybe that sale item is looking pretty good this week. Maybe we'll get our debt paid fast this way, I hope so, as I'll be writing about my journey. I'm new here as a Families.com money blogger, and I'll be sharing my life, my lessons and my tricks and tips with living on a budget. I hope you'll join me. Articles on budgeting from one more experienced than I: Learn more about Michelle Vandepas  In a previous life, Michelle was president of a medical manufacturing company, and then in private practice as a holistic business consultant. Relevantmoney tags User Comments  Valorie Delp (49340) 10 Dec 2006 03:03 PMWe use that archaic envelope system! It has saved us from accumulating more massive debt (our initial massive debt being a college education) and taught us the discipline for waiting for what we have. Of course we have credit cards, because you can hardly get by without them if you need to purchase an airline ticket, rent a car, etc. But interestingly, since we've been on our envelope budget (a few years now), we almost always have enough cash to cover those emergencies we deem credit worthy. Oh--and the most important benefit for me is that that archaic envelope system allows me to stay home with our kids.  Michelle Vandepas (579) 10 Dec 2006 03:05 PMThanks Valerie! yea, we are using those darn envelopes and it does work very well. . Thanks for the comment. Community Tags bugeting, debt, Envelope System Discuss this article
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My husband and I just spent a wad of cash remodeling our kitchen. Actually, I wish it was cash. We spent that good ol' American money called credit card and now we are paying the price.
