Organizing your Budgets: Idea 1

There are many ways to organize your monthly budgets. Here is ONE great way to keep organized and know how much your are spending each month on your budgets.

Using HARD CASH is one of the best ways to budget and allows for better money management. 

The Budget Envelopes

1. Name each envelope with your budget topics:
• Week 1 Groceries, Week 2 Groceries, Week 3, etc.
• OR if you only grocery shop once a month, just make one envelope for groceries.
• Entertainment
• Includes movie theaters, renting movies, bowling, taxi ride to the bars, concert, dance hall/club cover, golf tournament, lake day-pass, etc.
• Gas
• Eating out/Restaurant
• Includes fast food, donuts, snacks at the convenient store, etc. 
• Clothes & Misc. Shopping
• Everything from home decor, to socks, to headphones, to books, to ink pens, to jewelry, to gifts and birthday cards, etc etc. 
• Drinks (if you spend a lot here and need to budget yourself)
• It could be coffee, alcohol, gas station drinks, soft drinks at restaurants, etc.
• Utilities
• The main expenses are gas, electricity and water. 
• Auto Maintenance
• Includes oil changes, car repair, car payments, etc.
• And whatever else you need a monthly budget for...
2. Insert the amount of money you are budgeting each month into the envelopes. Example below:
• Groceries: $200 (for 2)
• Entertainment: $30 (each)
• Gas: $250
• Drinks: $20
3. To make customizable DIY envelopes that fit in your wallet, go to: http://kelleighratzlaff.com/featured/free-envelope-template-and-a-tutorial/
• OR you can keep your envelopes in your home and only take out money when you are about to go grocery shopping, to happy hour with some friends, about to fill up your car, etc. 
4. If you need the money in your wallet, but don't want to make envelopes to take up any room or make your wallet bulky, do this instead:
• Separate the money you want in your wallet with sticky notes, with the budget topic stuck to the bills. For example, you have $35 in your wallet. $12 goes for dinner tonight after work, $2 for a cup of coffee, $6 for buying your friend a drink on his 25th birthday, $10 for putting gas in your car to get home, and $5 extra just in case something comes up. Label each sticky note in front of each budget for the day to make sure you don't spend any of your other budget money for the wrong thing.

FYI: Doing this requires you to plan ahead your day (for the sticky notes option), your week, and your month (for putting the envelopes in your wallet). You have to know how much you are willing and able to spend each month on specific things before you can separate money into the envelopes. 

First and foremost, you must budget how much money you spend on the necessities (utilities/bills, auto and other monthly payments, and groceries). Then once you know how much of your salary is used up on these necessities, you can budget how much you are able to spend on entertainment and leisure topics (non-necessities). 

Also check out Dave Ramsey's tips on the envelope system: http://www.daveramsey.com/article/dave-ramseys-envelope-system/lifeandmoney_budgeting/