How we budget.....

I am so exicted to bring you a series of posts on money.  As I said here, I hope to give you a little peek into our lives. Today we will get things started with BUDGETING! YEAH! NO? At the beginning of each month, we sit down with these 3 things .

1. This is our "home binder".

It has four tabs. The first tab is for our budget.  As we get bills in the mail, I stick them in the binder. Everything we need is in one place!

2. Paper.

Yes, we budget on lined paper. We are very 1982 and proud of it.  For us, the simpler the better. We have found this to work for us. We can look back to a previous month and see how much we spent. Our income varies from month to month, so we are also able to track HOW much money we are making (or loosing) each month. As we post payments, we write down each expense. We calculate our cash envelope expenses and decide what money to move to our various savings accounts. We write all this down on our notebook paper. We place this paper in our binder. We make a zero based budget each month. We spend EVERY dollar on paper.

3. Cash Envelopes.

We are a big fans of using cash. Statistics show that we spend LESS money when using cash. We use cash for groceries, clothes, and other miscellaneious house expenses. We house it all in our cash envelope wallet. If I could pick ONE THING that helps us stay on budget, this would be it.

We have used this 3 part system for about 5 years now. It is simple, fast, and it works for us!

What is the best budgeting tip you've ever gotten?