Question

Hey Guys, me again  I have to ask a very novice question - please be kind! I am getting confused with my envelopes. For example, a $100 insurance that would come out once a month - as I am paid weekly, would you create an envelope/savings for this week-to-week, or pay it out of the pay check you receive the week you receive the bill, and budget with the remaining? Thank you in advance!  

Answer 1

For monthly bills I pay them with the check that comes before it's due. The only money I pull out is for cash envelopes and sinking funds. Anything that will be monthly that needs to be paid with a card is paid with the check before it's due.  

Answer 2

$100 monthly for insurance is a bill. I wouldn’t do an envelope just pay it when due (or auto pay).  

Answer 3

You only create envelopes for the expenses outside of your recurring monthly bills. Bills = mortgage, electric, loan payments, cc payments, etc. All of that is left in your account so you can pay those things. Envelopes = variable expenses such as food, pet supplies, household supplies, entertainment money, etc. You take cash out for these after all your bills are paid.  

Answer 4

I wouldn’t do a envelope for a bill that is due each month. List it on your calendar tracker whatever the due date is and keep the money until you pay it, if you have a hard time doing that you can take the money out each week and redeposit it to pay when its due.  

Answer 5

If you are not able to pay it with one of your paychecks then split it between paydays using an envelope. Really depends on your income, and when your bill due dates fall. Most of my bills fall within a 7-9 day window so if I got paid weekly then I would need to use more than one check to pay them.  

Answer 6

We have done it both ways. Now we use envelopes to save for things that it is easier to pay cash, like birthdays, Christmas. but we have also done done cash envelopes and redeposited it to pay by check. depends what eorks gor for you. for us it was a matter of finding what helpsvus stay disciplined. or not tempted.  

Answer 7

Thank you so much everybody! I think I was making it more complicated than it needed to be