I am so glad to hear it is working for you and I hope I am able to report the same in a few months. I know I probably shot a little high on how much I would be spending so I might get to drop it back if after 3 months I see I am using no where near that much for certain things. Then that money can just go into savings or can pay off somemore of our debt. I would love to be completely debt free (except for my house) in 4 years and then I can start knocking that off my list as well!!

Thank you so much for your suggestions and I look forward to hearing from you again

Heather

We do a modified version of it, not that exact. But, I do write on my envelopes where the money is going, and how much. I rarely deviate from it. It isn’t hard, it isn’t bothersome, and the best bonus is when I am asked if we can buy something, I can say check the envelope, and see if we can afford it. No more arguments! Children, and husbands, well anyone, can have a hard time understanding why we can’t afford a $10 thing when there is hundreds of dollars in the checking account. Well… there is the mortgage, the utilities, groceries, and on and on. With the envelopes, I don’t have to justify my decision!

In addition to the types of envelopes you have, we like to keep one just for hospitality. This can include taking friends out, or giving homeless people some cash. We do not keep track of how this is spent. This is a gift back to God. btw, do I care if a street beggar spends it on anything but food? No, I do not. I am giving the money to honor God.