Divide your cash into envelopes

snugglebug1

I have found this to be a brilliant way of either getting out of debt or staying within your means.

When you get paid take all your money out of the bank (obviously leave any money in there to cover direct debits/overdrafts etc)
if like me you get paid a certain time each month work out for the month whether your next pay day is in 4 or 5 weeks. If it is a 4 week month divide your total cash into 4 and put in each envelope then mark up week 1,week 2,week 3 and week 4 and whatever you have put in that envelope is your spends for that week only if you have nothing left before the end of that week you can not start on the next envelope until week 2 begins (if you don't have it you can't buy it), so you must make sure you have food and petrol money and any other essentials. Give it a go guys and see how you go but this is definately one way of NOT overspending!!!!

Good luck and please post your results I would love to hear how you have got on.xx:beer:
Official MoneySavingExpert insert: This sounds like a great way to manage money. Thanks to snugglebug1 for sharing this challenge.

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adam68

I do this but online.

I have separate "online named accounts" and divide my savings among these.

mandragora_2

My MIL used to do this, but with tins - one for each bill she was expecting - coal, grocer, insurance, and put the requisite amount away each week. I second the online version, as it's less likely to get robbed!

polkadot

I bought a bunch of these: http://www.ebay.co.uk/itm/260454510512?ssPageName=STRK:MEWNX:IT&_trksid=p3984.m1497.l2649
and a few of these: http://www.ebay.co.uk/itm/290600167816?ssPageName=STRK:MEWNX:IT&_trksid=p3984.m1497.l2649

and made the pencil bags into a "book", used a sharpie to lable them. Each of the children have one for nappies/formula/school bits,one for petrol and one for Motherships second purse system

At the end of the month I roll over whatever's left...with the plan that at the end of the year we'll have a bit of a cushion.

Learning2Budget

I've just found an app that lets me track what Im spending this way. But am seriously thinking of trying it for my spends when i get paid.x

debtfreewannabe321

I used to use envelopes but found i was dipping in and out of them all lol so i now have about 13 online savings accounts all linked to my main account and they each have different names- petrol, clothes, car insurance etc and i transfer the money from each savings account into my main one when a bill is due

I've also just set up standing orders so on pay day my pay is divided into these accounts straight away! (obviously leaving enough for dd's due out ) it's a great system and i'd recommend it too x

=booboo=

debtfreewannabe321 wrote: »

I used to use envelopes but found i was dipping in and out of them all lol so i now have about 13 online savings accounts all linked to my main account and they each have different names- petrol, clothes, car insurance etc and i transfer the money from each savings account into my main one when a bill is due

I've also just set up standing orders so on pay day my pay is divided into these accounts straight away! (obviously leaving enough for dd's due out ) it's a great system and i'd recommend it too x

What bank do you use that allows you to do this?

Only ask as i would feel a little awkward walking in and askign to open 14 new accounts =/

adam68

=booboo= wrote: »

What bank do you use that allows you to do this?

Only ask as i would feel a little awkward walking in and askign to open 14 new accounts =/

I do the same, im with halifax. Also used to do the same with Barclays account

You do it all from your home PC, takes 2 seconds then you just name the account.

Easy, and one of the best ways to manage savings

There not "new accounts" so to speak, they are more of an extension to your main account.

debtfreewannabe321

I have a hsbc main account. Then 12 or13 flexible savings accouts all opened with online banking so didn't have to go in and ask I used to also have similar with barclays although i never stuck with it which is why i ended up in debt in the first place!

tiff

How does it work in practice for example when you buy petrol, do you go home and transfer that amount into your main account?

adam68

tiff wrote: »

How does it work in practice for example when you buy petrol, do you go home and transfer that amount into your main account?

I only do it for savings.

I have a spreadsheet which has all my incomings and a list of outgoings (food / petrol included) and this tells me what is coming out and what i will have left at the end of the month. If you have standing orders with cash amounts going into your savings account(s) then add them to the spreadsheet. Also have a section for "other" so if i buy a take away for example ill add the amount to the spreadsheet.

Just categorize your online savings accounts, for example mine is like this.

MAIN ACCOUNT
£***

HOLIDAY SAVINGS
£***

CAR SAVINGS
£***

BACK UP FUNDS
£***

Use something like that in conjunction with a simple spreadsheet.