Envelope System

Jason and I sat down tonight to write out our budget for the entire month of August. This proved to be no easy task. Actually it took us a little over 2 hours, we are exhausted and ready for bed but there were no arguments and we both completely agreed on the budget!

Now with this being our first written budget in several years we understand that we will have to work with it over the next several months to get it perfect but we are pleased with how our first budget came out. We started with each pay check Jason receives this month, then we "spent every dollar on paper before the month has begun".

To help us save as much as possible and stretch every dollar as far as we can we've decided to use the "envelope system". We have an envelope sized accordion file (bought in the Target dollar isle for $1) with seven envelopes inside. Here are the categories we have: groceries, toiletries (this includes diapers), clothing, gas & oil, laundry, dining out, and entertainment. I will be going down to the bank in the morning to withdrawal the exact cash to put into each of these envelopes for this week. We'll do this with every pay check Jason receives from now on.

Now like I mentioned before I have been couponing for almost a year now. During that time I was able cut our grocery budget in half and eventually in half again! Since moving to Texas I've been slacking a bit so I've made it my personal goal to spend no more than $80 a week on groceries. (Last month I was able to spend $200 less than June on groceries!) Hopefully I can meet this goal and challenge myself more in the coming months.

While couponing I have came across many great coupon blogs with so many great ideas, tips, and information. My two favorites are www.myfrugaladventures.com and www.couponingtodisney.com. Last month I noticed a post on the Couponing to Disney blog that caught my eye. She was challenging everyone to go an entire month without eating out or cutting your dining out bill by 20%, 50%, or 70%. At first I was just going to do the challenge so I could enter us in the giveaway she was having but then I realized that this was exactly what we needed because we would held accountable for our dining out choices. We were able to cut our dining out by 52% last month. We plan to cut that in half again this month plus I am challenging myself to try cooking some new meals for my family and use everything I have on hand here at home before running out to the store.

SIDE NOTE: The biggest thing that has helped us cut our dining out expenses was making a list of 7 to 9 meals that we have all ingredients to make. Posting that list on the fridge on Saturday or Sunday to use for the week. Then throughout the week I can look at the list in the morning when I'm feeding the kids breakfast to decide what we'll have for dinner. If I need to pull meat out to thaw or put food in the crockpot for that nights meal, I can do so right then. Later after the kids naps I can prepare dinner and there is no debating on what we should have so we are less inclined to run to the local fast food place to pick up dinner. I also try to use every last bit of everything I make...for instance tonight I made chicken burritos. I will use the left over spicy chicken in the quesadillas I am make later this week that I'll serve with a crockpot of pinto beans. I also allocate one night towards the end of the week (normally Thursday or Saturday) to have left overs. The boys have big appetites these days so sometimes leftovers also include cold cereal or mac and cheese. ;-)

With our budget written and our envelope system in place we are ready to put away the debit cards, cut the credit cards, and get down to business!!