Frugal Friends Living On Social Security/ My Envelope System/ How I Budget My Money

hello welcome to my channel again um today's video i had some people interested in my envelope budgeting and they want to see how i do it so that's what i'm going to show you today and to keep this from being extremely long i'm going to just jump right into it and i realize you're having trouble seeing what's on the table here i can't get my tripod positioned any closer to show it so i'll just kind of talk you through everything these are all the supplies that you need to do the budgeting thing envelopes index cards magic marker notebook from the dollar tree and i when you start out um you you can use these kind of envelopes i stopped doing them because the money was falling out through here and keeping them in and out of your purse like that they were getting raggedy and i always keep two envelopes in my purse at all times so just to stop them from getting ragging i just went to walmart and i got these these bags their zipper their makeup they're plastic and they work really good okay the first thing you need to do when you're setting this budget thing up and i've done this budgeting thing now for three years and it works really good for me i've tweaked some of the things that i did in it um and i don't know if i'm doing it right or not but it works for me so i'm going to continue doing it the first thing you need to do is set go and set up a budget if you don't already have a budget set up that's the first thing you need to do and you write down in this budget everything that you use or buy or think you might buy for a month now this is not my actual budget this is one that i've made up to show you and i don't know if you can even see it over here on this side you put down everything that calls for the month and then you divide it by four and on this side you put the weekly amount if something comes up like on this cable here that's 150 when you divide it it comes 37.50 i round it up to the nearest dollar so i put 38 dollars so that's the first thing you need to do figure out exactly what you think you're gonna need to to live for the month and write it down for the month and then split it up weekly and all those things that i had on there on this card this is the weekly amount total comes to 535. now if you're figuring your budget up and this amount here comes out to more than what you're bringing in there's your problem right there you're going to have to go back into that budget and eliminate something or cut back on something like on your groceries you could cut back on that you could try to make your utility bills be a little lower you can't change your car and your rent payments i know that but you can cut you could cut cable off you wouldn't have to have cable tv i've got that on there um you could quit smoking or cut back on smoking there's ways that you could tweak it but you're gonna have to get your amount to where everything on your budget comes to less than what you're totaling up here so after i figure everything out by this amount i go on the back side and i figure out in denominations i hope you can see these um 100.50 2010 five and i write down how many of each of those i'm going to need like i had for the car i make a one little tally mark for the cable 38 i would put a 20 a 10 of five and three ones and you do that for each of the things that's on the back side and this is what you take to the bank now i would recommend transferring this to another page another paper instead of handing it to them because if they turn it over and they see this it gets confused i used to do that and they'd be like i don't know what to give you back this right here is what you want them to give you back and the reason you do that so when you come home you can fill your envelopes to the exact amount you'll have the correct change that you need now i have this budget figured out for uh like a two-person household working with income and figuring that they would bring home seven hundred dollars a week between the two of them so if your budget is for 535 let me get it where you can see it and you're taking it to the bank to get that out of 700 you'll have 165 left over take that 165 and put it in an emergency fund envelope because you never know what's going to come up that you don't have budgeted for because you didn't realize it was going to happen back in the day if i'd done that after i had paid my bills i'd take that 165 dollars and blow it but i don't do that anymore i was constantly broke things were always late they never got paid on time i was getting shut off notices i was getting late notices that's never happened since i've done this budgeting thing then you take your you take your index cards and you write on these index cards everything that's in your budget and how much weekly you're going to put into it like this i don't have anything written on this this is miscellaneous but i do on this this is your insurance envelope this is your car envelope when you get home from the bank you'll take your bank envelope that has your money in it you'll take it out and if you figured out your denominations you should have your exact change to put in your envelopes so you're going to take your car in envelope that you've budgeted for a hundred and you've asked them at the bank to give you a hundred dollar bill and you stick that in the envelope and you leave it there your insurance is 32 dollars you've asked them at the bank to give you a 20 of 10 and two ones you take that you put it in there and you leave it in there now if you do this every week and you don't get into those envelopes when your insurance comes due you should have the full amount to pay it same thing on your car you rent anything else as long as you put it in those envelopes and you don't touch it except for the you know the food and gasoline for your car that you will touch so let's say for instance that you've taken your uh your your miscellaneous money however much you figure on here and you went to walmart and you bought a few things and you come home and when they hand you your receipt and your change at the store you stick it inside of the envelope that you took it out of okay and you leave it in there next week you're going to add that same amount that you added back in there to this leftover money but when you get home you're going to take your receipt out always get your receipts keep all your receipts you're going to make a little notation at the top miscellaneous whatever it was food gas car whatever it was and you're going to have a little notebook that you've bought at the dollar tree that you're going to keep one month at a time in here of everything that you're spending money on you'll have one side of it will be in budget the other side will be out of budget and each time you make a payment on your car you'll write that down in here and you'll put a number one beside it that tells you you've put one payment in there groceries that week the first week you only spent 22 17 you allowed fifty dollars so you'll have some extra in your envelope next week when you put your fifty dollars in there it'll go in there with this same thing on your rent your smokes uh i think i had twenty dollars on smoke so say you spent 10 you'll put that in in the envelope and leave it in there you'll write it in this book and next week you'll add to it on the miscellaneous thing that you bought at walmart over on your outer budget because you weren't expecting that you're going to write the name of the store that you spent it at and how much at the end of the month all these things will be totaled and you can look at it and see areas that you're overspending that you have too much money and you can cut back on and you can tweak your budget you're going to have to tweak your budget from time to time once you make that first budget it won't always stay that same i've i tweak mine like once every three months so then you take this receipt after you've wrote at the top you know what it was groceries food uh miscellaneous out of budget something that you didn't plan for like let's say your microwave broke and you had to get a new microwave you know you're right up here out of budget microwave or whatever and then you have these envelopes here that you set up for the monthly and you put the month that it is in the year you take all your receipts from that month and put them in that envelope at the end of the month that envelope gets sealed and you put it away some more there's been times when i've had to go back to these envelopes and get receipts out for something so you need to do that to keep track of it and everything in here will match up with this and i think that pretty well covers it um like i said you could start off using these paper envelopes to start but i liked going with the plastic ones because they just hold up better when they're in your purse you know and you're taking them in and out i keep my food and my grip my gas envelope in my car all the time so that when my car tanks running low on gas i don't have to say oh whoa i need to go to the house i've always got it so that's how i do it i hope this was understandable and i realize you can't see a lot of this stuff on the table here because i tried to get my tripod as close as i could and i couldn't so anyway thank you for uh coming back to my channel i appreciate it um any new subbies out there might consider subscribing and uh i hope this helps somebody out maybe it would i hope i wasn't too confusing on trying to explain it i just know that i've been doing this like i said for like the last three years and my life's been so much better i always have the money to pay for the things i need and i don't have bill collectors sending me dones in the mail you know knock on my door want money that i don't have because i always set it aside i take it out every every week for my paycheck at the store and then my monthly check that i get from social security um i've had that set up to where i don't do an envelope on that but i take my rent my car payment and my car insurance directly out of that as soon as it gets to me my social security everything else i use the envelopes for so thanks and y'all come back and see me anytime bye

Channel: living in the moment.

Views: 2,313

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Id: d9oVXK-6jV8

Length: 11min 41sec (701 seconds)

Published: Wed Feb 10 2021