The Envelope Theory

Everyone dreads the word BUDGET! Who wants to do that? Limit the amount of money I can spend?? Why?

I know your pain. You want to spend that extra on that cute top and besides your saving money with my Homemade Laundry Detergent  right? :)

Well budgets can be very liberating too! Knowing where your money is going is very important. Suddenly you won't be trying to scrape by at the end of the month and saving for that great vacation won't be so hard!

I have come to love the Dave Ramsey method. I got his book as a gift a while back and have taken a page or two out.

The envelope method will take your budgets to a new place!

Working  with cash as opposed to cards can help you out immensely! Swiping the card is just so easy and can get away from us. You have to log on to check how much you have left. But having cash in hand is a way to always know how much you can spend and where you need to cut back!

It's really quite simple. Every month you decide how much you need in each area. I really like using Mint.com to set up my budgets. This will record all of your card transactions but you can also input cash use too.

Some of the categories I use are:
Food
Entertainment
Gas
Clothing
etc.

Make an envelope for each one and label.

Add up all of the amounts and head to the bank. Pull out all that CASH! I know crazy right?

Divide the money into each envelope and put them in a safe place. I like to keep each one at home so I won't be tempted. That way we have to go home before making an impulse purchase. Sometimes by the time we're home I would just rather stay home so I end up not spending as much!

I like to write how much is in each one. You can make them cute or just stick with the white. Also, just ask the bank teller for some envelopes, they'll hand over as many as you need!

I assure you, it you can stick to this you will find your self saving a lot more than before. Then at the end of the month if you have extra left over head out to a nicer date. For your other date night activities check out some of our cheaper date night ideas!
Or, even better, put the extras in a safe spot or back in the bank for that dream Disneyland vacation you've been thinking about!