Our Budget System-Why it works for us!

A Budget System? What is that?

One of the most popular forms of budgeting is the “envelope system” you take a set amount of envelopes and name them certain categories ex. groceries, toiletries, gas etc and at the beginning of each week you take out a set amount of money and divide it into your envelopes.

To tell you truth we’ve tried to do it once before with the “envelope” system and it just didn’t work for us.  We’d cheat and take money out of envelopes that weren’t for that one specific thing. Everyone has their own system that works for them! Check out my friend’s blog If A Tree Were To Fall, Alicia explains how the “envelope system” works for her family!

Our system just happens to be we have a  spreadsheet made up in excel and ANYTHING we purchase with our credit card goes into that spreadsheet. I carry a small notepad with me and anytime i make a purchase i jot it down in the notepad until i can get home and edit the spread sheet. It can be as small as a $0.50 candy bar, but EVERYTHING gets put into the budget. I know some people think it’s foolish to use a credit card to do a budget because it’s just to easy to spend the money. Well there are a few reasons we use our credit cards over cash.

  1. WE EARN CASHBACK-Yep in fact we’re using the money we got back from Christmas shopping to go out and eat for Valentine’s Day!
  2. IT’S EASIER TO TRACK OUR SPENDING-If we lose a receipt from a purchase we can always go back and look something up on our online credit card statement.
  3. NOT AS EASY TO LOSE-If you happened to lose your credit card you could dispute the charges!  If you have an envelope full of cash laying around and it gets lost or stolen your tough outta luck!
  4. CONVENIENCE-Your not having to run to the bank every week and take money out. Plus if you use cash your bound to have change left over that will eventually have to be taken to the bank and cashed in. You don’t have to worry about sorting change when your using your credit card.

Now these are all reasons our Budgeting System works for us, that’s not to say they will work for everyone else.


I’d love to hear your system and what works for you 😉

One Response to Our Budget System-Why it works for us!
  1. Do you have a Budget? | Brooke's Bargains
    January 24, 2011 | 3:14 pm

    […] *Stay tuned for Our Budegt System and why it works for us […]

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