I am a huge fan of envelopes. They work really well and, I believe, are the single most effective tool to execute your personal budget. Cash envelopes add the emotional element to buying something and really make you think about the opportunity cost of a purchase.
Our personal envelope process has evolved over the years. In addition to the stable Cash Envelope we added 2 Electronic Envelopes. These help us automate and simplify this process. We just got done using the Allocated Spending Plan form to craft our cash flow strategy till the next payday.
Below is a summary of how we are using Envelopes as part of our budget. There are a million ways to do this. I'd love to hear what works for you. Post a comment or use the contact us form. thx for reading.
Dave Smith is part of the KCC finance staff and a Dave Ramsey Certified Coach.