I haven’t really talked about our budgeting system yet. I guess I’ve held back because we have a different situation than most (in not all) of you. Since I live in another state during the week, we need to be extra careful about our budget. Being away from each other can create some miscellaneous expenses here and there. Not to mention that we have added expenses related to my weekday living arrangements.
I have been a big fan of the envelope system for quite a few years. For those of you who are unaware of the envelope system, let me give you a very brief overview. The envelope system is a budgeting technique where you place cash into an envelope based on the amount that you budgeted for that category. For example, if you budget $400 a month for groceries, you place $400 cash in an envelope and use that money every time you buy them. Once the money runs out, you can’t spend any additional money on groceries unless you use money from the other envelopes (such as entertainment). This is a good system if you consistently overspend on a credit card.
Since my wife and I live apart, it’s difficult to keep cash around and make sure we each have enough for a week at a time. Therefore, we needed something that could be taken care of electronically. That is where Mvelopes comes in. Mvelopes is a web-based envelope budgeting system. You just set up your envelopes online, fund them with the click of a button and then spend with cash or debit. Once the transactions come in (they are automatically downloaded), you just tell the program which envelope to take the money out of. It’s that easy.
Even if you don’t live away from your spouse, Mvelopes is a great tool. Using the traditional technique of the envelope system (cash) can be a little messy. You are keeping a lot of cash on hand and it can be lost, stolen or spent recklessly. Mvelopes cleans up that mess by making everything electronic.
My wife and I recommend Mvelopes. It has done wonders for us and has really helped us pay off debt.
Mvelopes is running a special right now where if current members sign up new customers, the new customer will get 25% off a subscription. I will get a small commission if you sign up. However, it works the same way for you too. If you sign up for Mvelopes and then sign up some of your friends, you will receive that same commission.
P.S. The 25% off deal only lasts until January 31st. After that, the discount goes back to 20%.