Anyone who knows me knows I try to make my dollar stretch. I love numbers always have and my goal each month is to make sure we spend less than we earn (what a concept huh government??) NEWAYS! When we lived in Spring Hill Kjell got a speeding ticket so he got a job at Sonic to pay it off. He started coming home with lots of cash from tips and thus was born the envelop system (not to confused with the other envelop system that also requires... envelops.) These envelops all have a category Car insurance, car tags, Christmas, one for each kid for college, house insurance, house taxes, home repairs, new car fund (wish this one grew faster) oh and FUN which the purpose of this money changes every time we hit 100 bucks. With all my survey money they go in the envelops in 10 dollar pay outs, when we have more money at the end of the month after all the bills are paid, our tithe has been taken out also the monthly amount that is taken out for house taxes, car and house ins (more on that another day) if there is money left over we divide that by three 1/3 goes to paying off the house 1/3 goes towards a new car and 1/3 goes towards the envelops. They used to get money put into them faster but this is just an example, you could have any different category you want just make sure you have a bit of record keeping on this because obviously you don't want to keep all that money in the house and end up taking it to the bank at times I just put it into savings and then just have track of how much is in each "envelop" on the envelop. This is perfect for when say our car tags are due and we owe 260 bucks but with the envelop system I've saved 220 for it this year which means the only added expense this month is 40 dollars.
If you have any questions just let me know. It made sense to me but I've done it for 7 years.