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Tweaking our budget and envelope system

February 3rd, 2008 at 01:06 pm

They need a little tweaking, the budget and envelope system do. They'll work, I'm sure, but I set up this month with three pay periods rather than two. I didn't stop to think that the third pay period is on the last day of the month and by counting it in this month and dividing the monthly amount to go in the envelopes by three I was cutting it way too thin for two week periods. Does that make sense? I hope so! Anyway, after discussing it with DH I adjusted the envelope amounts to reflect a two pay period month. It should work better now, I think, but the budget and envelope system both will need a little more tweaking here and there to get them just right.

Also, it was asked in a reply to my previous entry if DH and I get allowance. We haven't done that in the past but maybe we need to. DH just keeps a little of what comes into the shop for himself and if I need money for something I ask him for it. I haven't the foggiest how much allowance we should get, though. Considering that we have a fairly low income, substantial debt, and are just getting into the concept of saving, what's a reasonable figure for weekly allowance per adult?

Okay, I have to head to work in just a bit. Not that I'm eager to do so but it helps pay the bills. Smile

2 Responses to “Tweaking our budget and envelope system”

  1. compulsive debtor Says:

    Try writing down every dime you spend for a month and what you spend it on. Then you can figure out what kind of allowance you and your husband should get based on an average of what you spend over one month. For instance, our allowance areas cover personal care, clothes, shoes, personal growth, hobbies and lunches out. Every two weeks, I dish out allowance in little pink envelopes and the rule is that once that money is gone, it's gone so you better spend it wisely. We also don't care what we're each spending it on, so if my husband wants to blow his money on drinks with the guys then that's his choice. It works for us.

  2. scfr Says:

    An allowance can be a very good thing! No one wants to think they have to account to their spouse for every single penny they spend; an allowance prevents resentment.

    There need to be rules, such as what the allowance must be used for instead of the regular budget (chewing gum, Whataburger, etc.). I think it helps to keep the allowance on a cash-only basis, and keep that cash seperate from the rest of the money you carry, such as in a seperate coin purse.

    A good amount for an allowance (or what we call "pocket money" in our house) would be an amount that would:

    1. Result in actual savings (both of you would end up spending less on "allowance items" than you currently do).

    2. Not make either of you feel so deprived that you end up frustrated and quit budgeting all together.

    3. Fits with your financial situation.

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