Envelope Update
A CHOOSE YOUR OWN ADVENTURE COST OF LIVING CALCULATOR:
Not to be taken too literally or used in place of a good accountant!
We are on our second week of the envelope system and I have to say I really like it a lot. It's completely guilt free spending, although the buyers remorse is a little heightened.
Here's a small example of how this dynamic plays out. Yesterday was personal blow money pay day. I get $40 for the week, and so far I haven't broken either of the twenties yet. I am sitting in my office about to have lunch that I brought from home. I forgot a coke and corn chips and I am having a mexican food. As funny as it may sound, I have really been wrestling with the idea of going out and spending three dollars on a coke and chips, or just keeping my crisp new twenties intact and doing without.
I have decided to do without, and that is the brilliance of the system. Every purchase is weighed against the availability of cash and real need of the item being purchased.
Now we haven't completely transitioned yet. We had to buy plane tickets for Thanksgiving and that will take a couple of months to payback (but travel is built into the budget), and as anybody in our Bible Study can attest to we really needed a new couch which we did just purchase from IKEA.
We have really like the system so far and anticipate it getting even better as time goes on.
PS: I need to make $180,000 in ten years to have the lifestyle I chose on the survey above. Yikes! I wonder if that takes inflation into account? That's a pretty big envelope. Gotta kick that Starbucks habit!
6 comments:
I only need to earn $120,000 in the next ten years. Fun "calculator." Unfortunately, it didn't take into account saving for college(s).
Don't worry about it! Notre Dame isn't that expensive is it?
Jason- We've been doing the envelope budget for the last year and a half. It has been amazing!!! There have been a couple of times when I haven't gotten to the bank to get cash, and I feel so guilty when I have to use my debit card! It was because of the envelope system that we did not go into debt with the adoption. I'm glad it is working out for you guys. I'm a HUGE believer in it.
Isn't it weird how you can sit and think about such a "small" purchase for such a looong time? but you're right...that's the beauty of the system...making you so much more aware of what's available to spend.
What was wrong with your sofa? I liked it. Did Levi chew a hole in it?
"when i get a little money i buy books; and if any is left i buy food and clothes." erasmus
but seriously, i buy a double espresso and bring my own glass, ice, and soy milk. it helps a little.
I only needed $80,000...somehow I don't think that can be right...but if it is, maybe we can move to New York after all...hope you guys are doing well
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