Tuesday, January 19, 2010

budgeting capsules

As one of my new years resolutions, I vowed to tighten the cash reigns a little bit. I have reworked my budget based on most expenses (minus a few that B covers himself). As a single income family, he puts some of his pay into my account each month and I am in charge of running the household, paying some bills, medical expenses and basically all daily spending. I keep a certain amount in my account for things like doctor's appointments, health insurance and phone, put aside a certain amount for our monthly savings and then take the rest of the cash out and split it up into different capsules to dip into every week/month. I have used this kind of envelope system before and it seems to work well, as long as you remember to keep all of your receipts, put your change back into the right envelope and remember to bring the envelopes with you when you need them.

Here are the capsules I created: EATS (groceries etc.), DIGS (entertainment/meals out), SPLURGE (toys/clothing/gardening, crafting, home decor), HOT MAMA (waxing, hair, makeup etc.), BE CLEAN (supplies/monthly cleaner). On the back of each I have the amount allocated per week and month and the list of things associated with the category.

If there is any money left over from the month, I keep it in the capsule instead of putting it in the savings account. This is because for example, I only have my hair highlighted once every 4-5 months so I will have to put aside a little each month to have enough for my treatment in 5.

Budgeting is tough, but the more you do it and work on it the easier it becomes. It also helps that I have vowed to go my 365 days of nothing new, which means even when I am "SPLURGE"-ing the items are second hand and a lot cheaper than if I had bought them at full price.

How do you budget your money, and more importantly save? I am a true Cancerian- I love a good little nest egg to rely on when you need it.


ps. the capsules were part of my reversegarbage delivery a while back... was wondering what I'd do with them all.


CurlyPops said...

The capsules are a great idea. I have a spreadsheet where I record all of my expenses, and a little bill book that is supposed to live in my handbag to record day to day expenses (must put it back in there)!
I put a little bit away into a high interest online savings account, that hopefully I won't touch.

m.e (Cathie) said...

love your budgeting strategy.
i don't have anything formal but I don't buy things brand new unless absolutely needed & ridiculously reduced and do things like hair myself..fiddly but cheaper, we don't eat out, we grow veggies & herbs & most impotantly, hand me down kids clothes & oppies are the best.
goodluck Meagan

Catherine said...

My hubby does the budgeting like CurlyPops on a spread sheet and he updates it yearly to account for increases in bills. It works well and less stress knowing that the money will be there for a bill. I'm a Cancerian too so I always make sure there is something for a rainy day.:)Your budgeting sounds like a well organized system too and I'm sure will mean less worrying about money which isn't fun.

Cass said...

We have a spreadsheet with all the details (income, expenses, etc) and then ziplock bags for each section. The sections are similar to yours - groceries, entertainment, splurge for me, spurge for D, C's soccer money for weekly fees. Since we know roughly how much the electricity, gas and water bills will be I pay an allocated amount off these each fortnight at the post office.

faerwillow said...

~spend less...save more...a challenge i think is among many! i to personally have taken on teh challenge of no spending...teaching the little ones need verses want...consumption of useless wasteless things tha engulf our lives and create such disarry! we have a set amount that goes out and allow for only so much for two weeks at a time...also using cash...think you become more aware of what you are spending verses debting away! when the money dwindles down you think twice ...so i really need that...happy budgeting and great concept you have found...brightest blessings~

One pair of Hands said...

The capsules worked for my parents and for us. You're on the right track. Love that sandy little person in your last post. What a treasure.

Kate said...

Wow that is a fantastic way to budget. I particularly love the little names on each capsule.

Moderate Means said...

Cool capsules. We do envelopes but your approach is much cuter :)

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