Our Envelope System

Mr. Free and I started off marriage by doing the envelope system, but somehow went wayward.

And so did our budget.

So we are back to it.

The infamous Dave Ramsey made the envelope system popular (which you can read about here)

But it's really quite simple. And works quite well.

For our household, most of our expenses are done online. Including:

Rent (soon-to-be mortgage)

Insurance

Utilities

Internet

Cell Phone

Netflix

Gym

Those are all fixed expenses that do not fluctuate.

We have those directly deposited out of our checking each month.

Our un-fixed expenses if you will, are what got us into trouble.

I would "budget" $60 for fun money for the month, but I wouldn't really keep track. I'd wind up spending $100+ instead.

This is where the envelopes come in.

For our household, we have envelopes with cash for "Groceries", "Pets", and "Fun Money".

(Our gasoline amount fluctuates as well, but we put that on our credit card and quickly pay it off to earn points).

Mr. Free and I have decided a set amount for each of these expenses, and cash goes into that envelope.

In the beginning I used actual envelopes, but they quickly tore.

I decided to whip out this scrapbook embellishment organizer to do the job. (Any coupon organizer from the $1 store would work)

I made tabs for each of those areas, as well as tabs for "Coupons", "Receipts" and "Stamps".

Having all of these things together has been a lifesaver!

I am no longer scrambling to find a receipt or leaving my coupons at home!

I am not, not, not an organized person by nature. This system is helping us sooo much.

The biggest part of this system is that you decided on the amount of cash for each category, and you only use that cash. Don't dip into other categories. Don't use your debit or credit card for those categories.

Hopefully this shed a little light on how we budget. The Free household has some major life and financial goals in the next 5 years, and we must be diligent in preparing financially for those things.

Readers, do you have any questions or any other budgeting tips to share? Do you currently use an envelope-ish system?

We are buying our first home.

Yes, the shoebox home we've already been living in.
My grandpa has graciously let us 'rent to own' for the past 3 years as we got settled as newlyweds. It's been such a blessing.
The time has come for us to take the plunge and make the place ours.
We are very excited to make this commitment (haha) and take this next step in 'adulthood'.

We've already done some improvements that I've chronicled before.
Like updating the kitchen.
And the bathroom.
And building a deck.
And painting the whole house.
And a new front door.
And landscaping.

whew.

We are excited to continue to make the place 'ours'. As our budget allows, of course.

So homeowners, any tips? Anything you would recommend updating to help with the homes value?
Any budgeting tips as now we have a mortage to pay each month?
We could definitely use your wisdom!

Brrrrrrr..........

It's cold at the Free House. Not just because of the weather.....



we are on a spending freeze.

Mr. Free and I have been INCREDIBLY blessed throughout our 2.5 years of marriage. We look back and see the many ways God has provided for us when we couldn't see how that could happen.
Mr. Free and I have decided that we need to temporarily live more simply and learn to do with out.
That is hard for me.
That means, no more:





We are even avoiding:


and trying to cook from the things already in our freezer and pantry.

This requires creativity, people!!!

But that's OK.

Through this experience so far, I've learned:
* to make my own latte's at home
* how to make homemade bread
* Mr. Free and I have been cooking from scratch together
* to shop from my own home: moving decor from one room to another can dramatically change the look...for FREE!
* that entertainment is everywhere and doesn't always cost $$$
* that spending an evening at home just spending time together can be a wonderful gift
* sometimes you have to make your own FUN

So far I've really enjoyed the challenge. Old habits are hard to break (running by Starbucks after a sleepless night, swinging by Target to peruse the sales, going out to eat on the weekends with friends...)

Does anyone have any living simply, money saving tips??? Please send them my way!!!!