Budgeting for Beginners; Cash Envelope System | BI-WEEKLY PAY | BudgetWithBri

[Music] hello everyone and welcome to my channel I hope you are all having a very happy day today today we will be talking about how to budget for beginners and how to set up your very own cash envelope system I remember a few years ago when I applied for my first credit card I did not know anything about credit or debt and I thought it was pretty neat that you can charge your expenses to this piece of plastic and pay it back on your own terms plus interest of course and 7 credit cards later Here I am finally budgeting my money and I have to say I truly do love it I look forward to my paydays way more now it's so fun budgeting and stuffing my cash envelopes and sharing everything with you guys now let's get into the video okay so the first thing you're going to want to do is list all of your expenses so here you can see I'm writing credit card number one phone bill cable internet credit card number two rent car payment and car insurance so as you can see these are just some examples of pretty common expenses I would say and after listing all of your expenses what I did was put the due date of the expense next to it so credit card number one will say it's due the 8th of every month the phone bill will say it's due the 7th table the 20th Internet the 15th credit card number 2 on the 13th rent on the first car payment on the 26 and car insurance on the 15th so this is completely made up but we'll pretend these are our expenses so after listing their due date next to them what I do is I list them in order by their due date and I find that doing it this way is much more convenient and way more organized the next thing you want to do is list all of your sinking funds and a sinking fund is anything that maybe you have an annual payment on such as your car registration or Amazon Prime and if you celebrate Christmas then Christmas would definitely be one it's something you were continuously saving up for knowing that it'll eventually come and when it does come you will have your payment ready and you won't feel guilty about spending that money because that's what it was there for the entire time and as you can see I have listed our sinking funds in alphabetical order I preferred this way but obviously you can do it however you'd like so now that we have listed our sinking funds we are going to go through them and find any of them that are an annual payment and for this it happens to be the first three here Amazon Prime car maintenance and Christmas so now that we have marked our annual sinking funds we will want to create a budget for them and so the first thing is you are going to find out when each one is due for that one-time payment so we will say that Amazon Prime is due June 30th car tags are due October 10th and Christmas is obviously December 25th next we will be creating a amount do for them so for Amazon Prime I personally pay $60 car tags will say we owe three hundred and eighty dollars and for Christmas we will say five hundred dollars is what we want for our budget and the way I find this is I make a list of everyone that I want to buy a present for I give them a budget and I add that total amount due and I divide that by how many checks I have left so let me show you guys what I mean by that so we will start with Amazon Prime this is due June 30th so I will be going on my calendar to count how many paychecks I have exactly from today until June 30th let's see 1 2 3 4 5 6 7 8 9 so now we will be counting how many paychecks we have left to pay our car tax so I will be calculating until October 10th 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 oh no 16 16 checks and next we will be counting how many checks we have left until Christmas so we will be counting paint the pay days until December 25th 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 so 22 checks left until Christmas and next we will be taking the amount due for the annual payment and dividing it by how many checks we have left so let's start with Amazon Prime we're going to take $60 and divide it by nine and this will give us six point six six and next we will be calculating the payment for the car tags so we will be taking three hundred and eighty dollars and dividing that by 16 that gives us twenty three point seven D five and next is Christmas so five hundred dollars divided by twenty two and we get twenty two point seven two the next thing we are going to be doing is rounding these numbers up so this will go up to $7 this will go up to $24 and this one will go up to $23 now that we have the annual payments out of the way we can move on to the rest of the sinking funds so here I am just creating another table and now we will be determining what our ideal amount will be for each sinking fund that we want to put from each paycheck so we now know that Amazon Prime will need seven dollars from each paycheck car maintenance will need 24 dollars and Christmas will get $23 I feel like clothing varies with whomever is doing it I put $10 into my clothing envelope because I don't buy clothes a lot so $10 I put $20 into my date night envelope I feel that this is a good amount so that's $40 a month and I'm also not the only one contributing to this envelope my boyfriend also puts money and if we want to go somewhere different or more expensive we'll let the money roll over until we have the amount of money that we want I also put a 20 into fun you're gonna need to figure out how much money you use for gas in one week and double that if you get paid bi-weekly so for this I'll put $60 next are gifts and make sure you know how much you need for gifts and whose birthday or any celebration that's coming up in advance so you're not scrambling for money for gifts so I'll put 15 I do not pay for all the groceries I just chip in which is why I put $20 but I'm sure that's not realistic for everyone so $20 I put $5 for medical so it can just keep adding up enough for a co-payment if I ever need that if you have any pets you want to make sure they have their own envelope for anything that they might need whether it be their food or a vet visit your savings is obviously completely up to you since I am paying my debt I have set a small savings goal for 2019 I set $500 so I started saving $20 a paycheck and by my last check in 2019 I will have $500 and for toiletries I mean that's anything puh conditioner deodorant razors all that stuff I also use mine to get my eyebrows done so $15 if you guys have watched my cash envelope stuffing videos before you'll know that I do not have a work envelope my boyfriend however does have a work envelope and that's because he is in construction so he puts $10 from every check he gets paid weekly and that money is used for anything he may need for work so whether it be new tools or I don't know anything he may need he has that there just in case so here we have all of our sinking funds and like I've mentioned before this is entirely up to you this was just my little input on this and I hope you guys find it very helpful next I'm going to list all of our expenses so I'm going to create another table can you guys tell I like tables the first column will be the due date of the expense the second column will be the expense itself and following will be the total amount due for that expense for the month and after writing all of these we're going to want to add everything up and we get to 1407 dollars and now we will be taking that total amount due and dividing it up into cheque number one and cheque number two and once again I'm going to add everything up I get seven hundred and five dollars and seven hundred and two dollars and the next thing we want to do is add seven hundred and five with seven hundred and two and make sure we get the correct amount so we do it checks out to one thousand four hundred and seven dollars so now that we have our budget laid out for us let's pretend check number one that we get paid one thousand and ninety two dollars we're gonna take that one thousand ninety two dollars and subtract our total from check number one which is seven hundred and five dollars and we get three hundred and eighty-seven dollars now this three hundred and eighty-seven dollars will be solely for our sinking funds I hope this makes sense to you guys I tried my best to go through it thoroughly yeah so this would be our budget and definitely if you guys have any more questions feel free to leave them down below in the comment section I will be sure to get to you guys and really quick I'd like to take this time to say thank you for all of your support it's been truly amazing you guys are just so awesome so thank you so much and I'll see you guys next time bye [Music]

Channel: BudgetWithBri

Views: 499,056

Rating: 4.9346228 out of 5

Keywords: budget, budgeting, beginners, budget for beginners, cash, cash envelopes, money, dave ramsey, budgetwithbri, budgeting for beginners, cash envelope system, debt, debt free

Id: IUt0zup2bHc

Length: 16min 8sec (968 seconds)

Published: Sun Feb 24 2019