Budget planning and envelope system

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mumofthetwins
mumofthetwins Posts: 1,111 Forumite
in Debt-free wannabe
Hi guys ... I'm sooo chuffed I have managed a NSW and I have now dedicated a side cupboard to my newly organised finances :)

I have made a new budget planner and an envelope planner but I could do with a little help. I am planning to use the envelope system for my groceries (separated into weekly amounts) I have a one for guitar lessons as I pay for these in cash and petrol (going to start in cash) as I'm being pretty frugal I don't intend and haven't for a long time spent on clothes (my mum picks up some mega bargains at the car boot all designer and great quality and she won't take anything for them) the boys lunches have to be paid online and I'm not sure what else to allow for ?

I have savings accounts for car and annual insurances and all other bills are DD ...

I'm determined to do it this time so any advice would be fab

Lisa x
DFW
January £0/£11,100

NSD
January 1/31

Comments

  • Karonher
    Karonher Posts: 916 Forumite
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    What about pocket money or entertainment for the boys? Birthdays and Christmas as well. Could you run to a "because we want to" envelope? It could be anything - even just a couple of pounds a week towards a takeaway or something when you all need a treat.
    Aiming to make £7,500 online in 2022
  • foxgloves
    foxgloves Posts: 11,113 Forumite
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    Hi Mumofthetwins - Sounds like you've had a good week!
    I use an envelope system as part of our household budgeting. I think it's quite a personal thing, depending on what you find it useful to save or have a pot of money for. We have 6 piggies:
    1. Car maintenance.
    2. Clothes
    3. Holiday
    4.Leisure/entertainment
    5. Presents
    6. Household maintenance
    Grocery budget is separate, as are bills & petrol & we each have a cash sum every month for Personal Spends.....that's our own to spend on what we like, but when it's gone, it's gone.
    F
    "For each of our actions there are only consequences" (James Lovelock)"For in the true nature of things......every green tree is far more glorious than if it were made of gold & silver" (Martin Luther King Jnr)
  • mumofthetwins
    mumofthetwins Posts: 1,111 Forumite
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    Thanks for the replies guys ...
    I think I will set up an entertainment fund - I don't really do much but the boys do occasionally want to go out with friends so would be a good idea.
    Also a presents one ... never thought of this but there are a couple of birthdays I do tend to buy for and obviously Christmas.
    Car maintainece I Cover with online saving account but the entertainment and presents would be handy to have in the house ... I can always roll over to the next month any which is not spent.

    Thanks guys x
    DFW
    January £0/£11,100

    NSD
    January 1/31
  • Dobbibill
    Dobbibill Posts: 4,135 Ambassador
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    An emergency fund,
    house maintenance,
    hobbies,
    include Easter (if you celebrate it) in the presents account.

    I love the enveloping system ;)
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • Drawingaline
    Drawingaline Posts: 2,941 Forumite
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    I use YNAB which is an electronic envelope system, so I have one bank account but all the money is put into categories and I check the categories rather than my bank balance before spending. Therefore I have quite detailed categories. But the ones outside of the direct debits include all the kids different activities, all my yearly subscriptions (Xbox, playstation etc) car stuff (maintenance, insurance, tax, RAC, petrol) savings (home improvements, EF and tax for self employment) holidays, general (haircuts, medical, Xmas and birthdays) food, and then entertainment (cinema, eating out, taxis etc)

    So very detailed but not much of it is actual cash but 'envelopes' in my bank account.
    Debt free Feb 2021 🎉
  • spudsmum
    spudsmum Posts: 584 Forumite
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    Hi,

    I have various pots that I put my money in.

    Insurance - self explanatory
    Christmas - self explanatory
    Cars - maintenance, tax and services
    Household - decorating and anything (small items) that needs replacing
    Holidays
    Fun money - anything we want rather than need including days out and treats
    Emergency fund - in case of boiler/appliance breakdown etc
    Miscellaneous - anything not covered by the above.
    Total debts £21050! :eek: now £10941. 76. Total extra income made in Jan22 £109. 27 Feb 22 £45.25 Total extra income made in 2022 £154.52 Aiming for debt free at 45 - 41 months to go!
  • datlex
    datlex Posts: 2,239 Forumite
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    Enveloping whether in physical envelopes or via savings/current accounts is great for making your money go further.

    What you have to remember to do is allocate both on pay day eve and pay day. Pay day eve is the day before pay day, when you can send any left over "spends" money to one of your savings pots. You'll probably find that using the envelope system makes you think before you spend and you will have money left. (you can put the excess into an easy access account.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • Sunkencosts
    Sunkencosts Posts: 93 Forumite
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    I too use YNAB and I find it really helpful to have loads of different allocations, including one titled "stuff I forgot to budget for!" (which tends to actually need loads of money for it, I''m still learning!)

    entertainment definitely has it's own category
    haircuts
    fuel for cars
    logs!
    childcare.

    They are the things we mainly pay for in cash, most other things come out on a dd.
    Savings:
    Emergency 404.38/1000 Car 200/600 Christmas 250/800 Holiday 250/600
    Grading 30/90 presents 40
    Total debt Jan 2018 53,938
    April 2018 47,780.52
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