Friday, August 7, 2015

Fiscal Friday No. 3: Cash Envelope System

Stopping by quickly today to share how we keep track of our money using a cash envelope system. Using our zero balanced budget we figure out how much cash we can allot to a variety of things that we need to spend money on each month. When we first started out we carried big envelopes with us everywhere we went. . .but now that I have this amazing wallet I have enough room for small dividers to keep track of our cash. {Seriously, best wallet ever. It also fits my phone! Perfect for the mom on the go!}

I used regular binder dividers that I cut to size and used washi tape and a black sharpie to make the labels. Easy peasy! 

We have six categories:

1. Spending Money 

2. Kids

3. Family Fun

4. House + Lawn

5. Celebrations

6. Car + Truck 


Sean and I each keep track of our own spending money. It's what we use for clothes, Starbucks, or anything else our little hearts desire. We can save it up across a few months or spend it all in one month...but the pot doesn't get refilled until the next month! 

For the kids we budget money for things like clothes they might need, ballet registration, new shoes, or even toys and games that we want to get them. 

Our family fun money is for going out to restaurants, strawberry picking, carnival rides or just ice cream after dinner. Basically, anything we do for fun as a family. 

To help with small projects and maintenance around the house we budget accordingly. Things like a new lawn mower propeller, curtains for the living room, new air filters, etc. are all planned for and can only be purchased with these funds. If there is money left over we might score some decor pieces from Target or HomeGoods! 

We also set aside some cash each month for "celebrations." This is to buy gifts for people's birthdays, anniversaries or retirements (there are always a ton of retirements in the education field!). We leave this envelope a little cushioned throughout the year and use what we save for everyone's Christmas presents too! 

Least exciting to me, but most important for my master mechanic of a hubby, the car and truck fund! A monthly expense for things like oil changes, maintenance, and of course every car cleaning and waxing product under the sun! 

If you missed the last few post in my fiscal series you can catch up here and here! How is your journey to debt freedom coming along?