Our envelope system started out with many envelopes and has changed through the months to a lot less envelopes. I will say the envelope system works and helps with overspending. But some envelopes only get used once or twice a year. So now we keep that money in a savings account and keep track how much money is saved for each category.
Our envelope system now only consists of "Groceries and Household items", "Recreation & entertainment", "Clothing", "Gift Giving (birthdays & Christmas)", & "Home improvement". We also cash out some blow money and split it up between us, and we each have an envelope of our extra blow money that we are saving.
The Categories we save in a savings account for are "Auto Service", "Pet Care", "Home Improvement", "House Insurance" & "Property Taxes".
"Home improvement we use in both right now. We use the savings for large purchases, but use the envelope system for when go shopping for small things to keep the spending down. This envelope may go away when it is empty.
One category we should we probably save up for is "Medical". This is one category we have failed to save in. We should probably try to save up at least $200 to $500 dollars. Anything over that could considered an emergency, and then the emergency fund will kick in.
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My families journey down the road of becoming debt free and finanicially sound.
Baby Step 3 Status
$10,000 emergency fund goal
Paused Baby Step 3 at $2500.00
Paused Baby Step 3 at $2500.00
Baby Step 2 Status
Started Total our Total Money Makeover on January 1st, 2010 with $49,705.46 in debt, not including our mortgage.
April 13th, 2012 we paid off the last of these debts. It took us 28 months and 13 days.
April 13th, 2012 we paid off the last of these debts. It took us 28 months and 13 days.
The Road to financial peace.
This is a record of our journey in finding financial peace. We are using the baby steps in Dave Ramsey's - Total money makeover, book. We will be trying to follow his plan as close as we can. We hope to have an end result where we have no debt, have a large emergency fund, are saving for buy everything, are saving for our kids college, and are building wealth for retirement.
When we started this plan on January 1, 2010. I was 32 years old and my wife was 31. We had been married for 4 years. We knew this plan would take a few years before we were on the last step in the baby step process. But we are dedicated not to give up.
This blog is to help us keep on track, and keep us focused on our goal.
When we started this plan on January 1, 2010. I was 32 years old and my wife was 31. We had been married for 4 years. We knew this plan would take a few years before we were on the last step in the baby step process. But we are dedicated not to give up.
This blog is to help us keep on track, and keep us focused on our goal.