Money Manager Ex is a free tool that I use to set up my "spending plan." With it I assign every dollar to a different account to be deposited in from my checking account each week. This is the same as Envelope Budgeting. Money Manager Ex is a great program that reminds me a lot of a much more condensed Microsoft Money. Really worth a look if you need a program that does not cost any money and gets the job done. You can download it here.
For each of my expenses I have an account. Each week when I had a job, I would deposit 1/4th of the total monthly amount into the account(eg: 6.25 deposited four times would equal my rent payment of $25.00). When the bill comes due, I have the money to pay the bill in the account. I debit the account, and start over again the next month. In those months where there are 5 paychecks, I would withdrawl the money into a savings account.
On top all all this, I would deposit 10% of my earnings into a savings account as well. Anything left over is spending money, to buy household items and to just "blow."
Now, without employment, I am forced to throw that idea out of the window. I have to start from scratch again. Feel free to leave suggestions
The account I use for my bills like that is called my Freedom Fund. I use it exactly the same as you though I also use it for my intermittent expenses too (like those quarterly and yearly ones).
ReplyDeleteThat way I can sock aside enough each paycheck to cover all my regular and irregular bills and not have to dig deep once a month, once a quarter or once a year from my main account.
I have heard of this Freedom fund. I believe in it's use, and takes this style of budgeting even further to help out in the long run. Thanks for the tip, I had forgotten about it.
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