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joann10
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can you teach me about the envelope system?
Hubby and I have been trying to figure out a reasonable bugdet and the envelope system seems to be the only way we could manage to keep things straight.
We have been close to losing our home recently, but the USDA has seized our income tax refund, so we will keep the house, but have very little to catch up other bills. (We count on our refund to get a handle on things which are behind, but this year the refund is gone.)
On paper we have very little accessible money for food, gas, paper products, school stuff and such....
Only about $400.00 for groceries a month and $60.00 for gas money to get hubby to work every month.
Into what categories do we divide the money? Do we get rid of our debit cards? (which get us into trouble!)
How do I deal with such a tight, tight budget without getting discouraged--which will lead the kids to become discouraged?
Just trying to brainstorm some ideas here.
Thanks 
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Bridget
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Oh Joann that's tight! But it's about where we've been. If the debit cards get you in trouble set them aside and don't take them out with you. Though they are more convenient at the gas pump than cash.
When I get discouraged on a super tight budget I keep a gratitude journal. I write that I hung 2 loads of laundry out to dry saving us electricity. I write that it's a warm day, saving us fuel oil. Anything positive that happened, whether it was on my own steam or just a little blessing.
Here is what I do for frugal menu planning and most of it isn't new or brilliant. :) All our bread is home baked.
My current menu:
Breakfast: scrambled eggs & toast, oatmeal, pancakes (scratch and sometimes the syrup is homemade as well), muffins & hard boiled eggs
Lunch: leftovers or sandwiches (I feed the littles, everyone else is on their own)
snacks: popcorn, fruit (one piece each per day in tight weeks) or homebaked quick breads or oatmeal cookies (my quick breads are usually pumpkin or blueberry since they are so nutritious and in all my baking I reduce the sugar and add an extra egg or two to boost the nutrition)
For suppers I planned around what I have, and what I know I can buy inexpensively on sale or at Aldi. We had already been eating 3 meatless meals a week and will continue through Lent. On Sundays I roast meat and use the leftovers for a couple more meat meals that week. Vegetables are what is on sale or frozen.
* meatless
1. Sat. -rice with taco seasoned ground turkey
2. Sun. -roast chicken and vegetables
3. Mon. -creamed tuna and peas over toast*
4. Tues. -chicken tacos
5. Wed. -meatless split pea soup & artisan bread (Ash Wednesday)*
6. Thurs. - chicken soup with rice
7. Fri. -baked beans and corn bread *
8. Sat. - spaghetti
9. Sun. Ham, potatoes and veg.
10. Mon. - chili & corn bread*
11. Tues. -crustless ham quiche
12. Wed. - pizza*
13. Thurs. -cowboys beans
14. Fri. -tuna noodle*
You can do this!! 
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God Bless,
Bridget, happily married to Kevin, mom to 8 on earth and a small army in heaven
Our Magnum Opus
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joann10
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| Posted: Feb 20 2012 at 7:32pm | IP Logged
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The whole thing has me very anxious....I don't want to risk our home going into forclosure again. Hubby will try to get overtime, but NY state has cut back on that, so it isn't very hopeful. He does work part time about once every two weeks as private security, if he gets a few more hours that would help. Our medical bills are enormous and that is on a constant basis.
I'll keep saying "you can do this"..Bridget. Thanks so much for the ideas..
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rcarter
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| Posted: Feb 20 2012 at 7:38pm | IP Logged
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Joann,
We do the envelope system, and have been for about 5 months. Just having that system in place has been soothing!
Here's how we do ours:
Envelopes for the following, every week:
*Church
*Groceries
*Blow money (Even if there's only $10 in it for the month, sometimes it keeps us from feeling discouraged about our finances)
*Grain (for our animals)
One important thing we learned is that both dh and I have to be able to agree how much goes into each envelope. Sounds like a no-brainer, but it kept either of us from being resentful or feeling like we had no say in the matter.
We deposit only the amount of money we need to pay our bills, plus gas money. I don't like going into a gas station and leaving kids in the car, even if it's super quick, and literally, this has become the only time I use a debit card anymore. I also love knowing that we have ONLY the amount in our checking account to cover gas and bills, and using the card for anything else will only get me into financial trouble! 
It was hard to get used to at first, because it seemed when we divvied up all the cash, it looked like there was nothing left to *do* anything with. But after about 4-6 weeks, it was actually a nice feeling to know that WE were in control of our money, not vice-versa. We did the Dave Ramsey Financial Peace program, and it's truly given us peace! We have other envelopes as well, like car repairs, gifts, etc., but we put cash in when there's a bit extra. And we try to put a little bit in savings whenever we can as well.
For us, at the end of our "Budget Committee Meeting," there was always a sense of excitement, actually. It's a very satisfying feeling, looking at what we paid and what we set aside for. No more arguments over when I should grocery shop, or what bill was going in late.
Another nice side-effect was that balancing the checkbook took so much less time just because we were using the debit card strictly for gas, usually once a week.
I hope there's something in this long drawn out post of mine that you find useful!
__________________
Rachel
Married to Bill 8/4/01
Mom to ds 9, dd 8, dd 6, dd 4, ds 1 and baby due 7/11!!!.
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ShannonJ
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Here is a description from the Dave Ramsey website.
The envelope system is such a great way to get a handle on exactly where your money is going. I think starting out with just basic envelopes is a good idea, then after you have gotten a feel for the system you will probably make your own adjustments.
Our major categories are:
Groceries/Toiletries
Gas
Eating Out
Entertainment
School/Office Supplies
Clothing
Automotive
You may want to divide yours very differently though! That's what makes is so wonderful, it is adjustable to you.
You may also consider other envelopes that are not in everyday use. Basically savings that are specifically allocated to certain categories. Some ideas are:
Birthdays
Christmas
Vacations
Major Auto Repair
Housing Repairs
New Car Fund
Retirement Accounts
Emergency Funds
If you can't add these in now don't worry. You will see where your money is going and if/where you should move it. The beauty of the system is that it really makes you think about whether you want to really spend that money!
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~Shannon
Mom of dd 12, ds 9, & dd 5
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joann10
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| Posted: Feb 20 2012 at 7:55pm | IP Logged
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I don't even think we would use our debit cards for gas, since the gas stations around here charge 5 cents less a gallon is you pay with cash....
So I think we will have:
church
gas
groceries
birthdays/Christmas (I think I need to put a tiny bit in here every payday)
medical(drs, copays, prescriptions)
Spreading the money out like this scares me...I don't know how we will do it...but if we don't do this..we will be back in big trouble...
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joann10
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| Posted: Feb 20 2012 at 7:57pm | IP Logged
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 I forgot about clothing....these kids go through ALOT of socks!!
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ShannonJ
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 Cheering you on!!
__________________
~Shannon
Mom of dd 12, ds 9, & dd 5
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MommyMahung
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Joann,
I think a good number of us have had our share of financial challenges.
I used to be a financial planner. Here are some suggestions that I have for you. First, have your priorities set. If you haven't written everything out in "black and white", then try this. I retired seven years ago, but we still help family and friends with these methods.
One of the things we used to do was to have our clients make three different lists. One was money coming in from all sources. If your kids work and contribute in any way to the household, list it!
The second list is of all outgoing expenses that have to be paid:
mortgage, all insurance, utilities, phones, television, internet, property taxes, all credit cards(no debit), food, clothing, school supplies, gas, car maintenance, car payments, any other installment payments, donations...anything else you can think of...
The third list will be your pay off/get out of debt list, but I think you should focus on the first two at this time. Once you see how much is coming in and going out it will put things into perspective. It might make it easier to see where you could cut back on expenses that you might not have considered.
Look at the credit cards, if you have any, and then pay only the minimum. Call the companies that you owe money to and tell them what is going on and ask them to work with you. A lot of companies will work with you, just don't be afraid to say no to them if their suggestions don't sound good and don't let them bully you around. They are doing their job, so be courteous, no matter what. The nicer you are the calmer the conversations will be.
The last thing I recommend is to sit down with the whole family and let them know what is going on. If you've already done that, then kudos to you! A lot of individuals don't think their kids should know what is going on, but somehow they always know. They see the stress and can feel what you're going through. You have older children who might even be able to give you some good ideas or volunteer to do more to help in any way possible. Keeping everything positive and staying focused on the end result you desire is what will help everyone in the family. Let them know that you've run into a challenge, but God always provides to those who help themselves.
Another really good thing to do is to make a "Goal" chart. Put your family in the center and then branch off with the most important things you must accomplish. Hang it up where everyone can see it. If you have a room in your house where you all pray together everyday, put it there. The more you see your goals, pray for the proper guidance and help, keep focused on them and the more you stay positive, the faster they will be accomplished.
Joann, I could keep going! I'll stop here. The envelope system is great! Many have been very successful using it. Remember to always use your debit card as a credit card, except for when you shop at Aldi...
I hope this helps in some way...
God Bless and I'll be praying for you and your family.
Laura
I hope some of this helps you.
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guitarnan
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I'm cheering, too. This will put you back in control of your finances. Wonderful!
Thoughts on clothes and socks...give family and friends your must-have sock sizes and ask them to let you know when they spot an awesome sale. Goodwill sometimes gets new leftover items from Target, etc., so it's worth a stop once a month (or, even better, info from someone you know who goes there, so you aren't tempted to spend!). Chances are this conversation will inspire some folks to share gently-used clothing with your younger children, too. Same for shoes.
Maybe we should start another thread with super-frugal healthy meal ideas? I'm sure we'd all love to have some new recipes and money-saving tips to try!
You can do this!
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Nancy in MD. Mom of ds (24) & dd (18); 31-year Navy wife, move coordinator and keeper of home fires. Writer and dance mom.
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JodieLyn
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MommyMahung wrote:
| Remember to always use your debit card as a credit card, except for when you shop at Aldi... |
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Why this?
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Jodie, wife to Dave
G-18, B-17, G-15, G-14, B-13, B-11, G-9, B-7, B-5, B-4
All men who have turned out worth anything have had the chief hand in their own education.
-Sir Walter Scott
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MommyMahung
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@JodieLyn
Banks have been and are charging more fees every time you use your card as a debit. It will usually show up on your statement as a POS fee or Debit fee or the like. When you use the card as credit, it not only doesn't get charged the fees, but the charge, in some cases, will not be immediately taken from your account. Just like with a credit card, it may take a few hours to a day to show up on your statement.
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JodieLyn
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| Posted: Feb 20 2012 at 9:37pm | IP Logged
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Thanks, that's interesting. I use it as a credit card because it's so much easier than trying to remember the PIN but mostly I use checks.. those do take a couple days to hit the bank and no fees AND I use duplicates so that I also don't have to keep track of receipts 
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Jodie, wife to Dave
G-18, B-17, G-15, G-14, B-13, B-11, G-9, B-7, B-5, B-4
All men who have turned out worth anything have had the chief hand in their own education.
-Sir Walter Scott
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guitarnan
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| Posted: Feb 20 2012 at 11:45pm | IP Logged
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That is why the envelope system is so nice. No one penalizes you for using cash because it's the cheapest option for any merchant. It's up to you, though, to save receipts and write down how much you spend.
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Nancy in MD. Mom of ds (24) & dd (18); 31-year Navy wife, move coordinator and keeper of home fires. Writer and dance mom.
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stellamaris
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One concern I have had using an actual set of envelopes is that I feel it is a bit risky having all that money sitting around in cash. I use a system called Budget Map which lists each category and helps keep track of what you have spent in each. You could easily do this with a small notebook. A three-ring binder works well and is flexible, but just sheets of paper will do the job if that's all you have on hand. Label columns (or you can use a page for each category) for each envelope-- for example, one for church, one for food, etc. At the top, write the amount you have for that expenditure for the month. Deduct whatever you spend in that category as the month goes on. I like this approach because I can use cash, credit, debit, check but still track spending. At the end of the month, it is easy to see if you have extra or not enough in each category.
You can also set up "savings" accounts to cover major, non-monthly expenses such as appliance repair or car insurance. Have a page for each saving category and add either a set amount per month or whatever is leftover from the monthly category at the end of the month.
This has helped me whenever I have consistently used it. The trick is to write down your expenditures immediately!
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In Christ,
Caroline
Wife to  dh 30+ yrs,ds's 83,85,89,dd's 91,95,ds's 01,01,02,grammy to 4
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mamaslearning
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Bridget, I love the menu ideas! Could you share your meatless ideas on this thread for Kristin?
You've received wonderful advice, and I don't have much to add, but could you get some assistance? Maybe state or federal aide? What about the medical bills? Would they be willing to settle for less than the full amount? I know the hospitals around work with financial hardships. Have you looked at WIC to help with food? Maybe a local food pantry or church organization? That's a really tight budget for the amount of kids you are feeding.
I know it's not always a good option, but depending on the situation have you thought about selling the house to obtain a smaller house payment? Plus, I'm sure you are doing this, but cut down on all the extras like cable, subscription services, etc.
I will pray for you! It seems like there are so many of us going through similar situations. I heard on the radio the other day that four years ago gasoline was $1.89/gallon and today in our area it is $3.65/gallon. Add to that the 20-30% increase in food costs, plus electric/gas increases coupled with a decline or stagnation in wages and it spells disaster.  Oh, and our medical insurance cost has gone up 30% in the past few years while our pay has decreased 40%. It's so overwhelming!
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Lara
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hmbress
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Joanne, I haven't read through all the responses but was just thinking - if you normally get a tax refund, perhaps you could change your withholding so that you can use that extra money throughout the year instead of waiting for the refund?
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Heather Rose (ds13, ds10)
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joann10
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[QUOTE=mamaslearning] You've received wonderful advice, and I don't have much to add, but could you get some assistance? Maybe state or federal aide? What about the medical bills? Would they be willing to settle for less than the full amount? I know the hospitals around work with financial hardships. Have you looked at WIC to help with food? Maybe a local food pantry or church organization? That's a really tight budget for the amount of kids you are feeding.
/QUOTE]
I do expect to have to occasionally visit the food panty. I applied for food stamps and with hubby's part time work we make a couple hundred dollars too much a month. (and dh would rather work than use public help). I coupon like crazy and that helps a lot.
I know so many are in similar situations, prices for everything are getting so high...it's tough to make ends meet.
We have cut out all extras but internet...hubby believes I need that to keep in touch with the outside world. Plus, being online saves a lot on homeschooling....it's my resource for much of our schooling.
Thanks for the suggestions and prayers. They are greatly appreciated!
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mommy4ever
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Gail Vaz-Oxlade uses a jar system. She has a great blog that explains it all.
http://www.gailvazoxlade.com/articles/budgeting/magic_jars.h tml
She has some great downloadable excel worksheets to plan your budget. You could replace the jars by envelopes. Jars are nice because they show you at a glance, and you won't take them all with you, so you can't borrow from one jar to the next. Means you need to plan your trip out. The worksheets could help plan your envelopes if you prefer that way.
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ctrivette
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We use mint.com to track budget catagories using the credit or debit card. It let's us know where we are with each transaction and if we go over anywhere.
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4Real Forums : Our Lady's Loom, Larder, and Laundry
Topic: With all the budgeting talk
