Kudos to the "Envelope System"!

[Ima saver]

Elgin, I tried this, just keeping track on paper, a few years ago. I did not have a computer and still don't know how to use one.
I got messed up after a few months and went back to the cash in the envelopes. That is what works for me.
I am strict about NEVER borrowing from one envelope to pay something else.

I use an Excel spreadsheet as my "envelope." All income in one column, deposits into our savings acct. and IRA in their columns and all outgoing gets their own columns...Debit,Cash and Credit Card. I also have a section for comments so I'll know what and where and how much I spent. It all totals at the bottom and it's very easy for me to see incoming and outgoing $$$.
If there's any drawback, it's having to log each transaction. It can get tedious.

[greedy4chips]

Ima Saver uses those great big manilla envolopes...8 1/2 x 11 inch ones.

Seriously that was a great story and hopefully the lesson learned will carry over into other areas of your marriage. That will truly make you rich!

[Coleroo]

That's great that you were able to come up with a plan that you are both happy with!

I'm wondering though, if maybe a "virtual" envelope system would be better, instead of all those withdrawls/deposits into your bank accounts. You have your check direct deposited to your bank account, then in a computer spread sheet, you divide it up so you know what amount is earmarked for what bill. Then when you pay the bill, you just subtract that amount from the "envelope" in the spread sheet. You'll save a ton of trips to the bank, and you won't have to have a large amount of cash in the house (I'd feel uneasy with that much cash laying around, myself).

Still, if you're happy doing it this way, then keep it up!

Well... thats the point of why I was so happy in my post. :-D

We married in June 2006 - and until Mar 2007 I WAS doing the virtual envelopes (even had 5 bank accounts with various nick names). I have always done things electronically. My husband has not - and therefore the largest source of fighting stemmed from his not caring about our finances, and me having to "do all the work". I had to come up with a solution that would get HIM involved in it. Having things on the computer (spreadsheets, checking accounts, electronic banking) was not working, and did not work for us as a couple. While yes that was EASY for ME (since i love doing everything electronically), it was impossible for my husband to do since he didnt care for "that world" and had only used cash before. Forcing him to step over into the virtual world from "his way" of doing things were all but impossible, but for me to step BACK into a cash only world was easy enough to be doable.

Now that we have cold hard cash and something "visable" in the house I feel better and more in love with him than ever because he now actively participates in budgeting, financial decision making, and the bill paying.

[Ima saver]

I think that is great coleore. No, I don't use big manilla envelopes just the plain little white envelopes. They get used so much, they are falling apart. It is great when husband and wife agree.

[cbmeeks]

That's a great story. You should send that to Dave Ramsey.

[Ima saver]

Every Monday is my envelope day. I cash the paycheck and get most of it in 20"s. I have a sheet of paper with my weekly totals for each envelope written down.
I sit down, sit the money in the envelopes and I am done in less than 10 minutes. Twice a month, I take the money out, put it in the bank and write the checks.

[jmjj215]

I haven't found anything as effective as an envelope method for managing money.