Our total money makeover thus far.

We've been doing a written budget and using an envelope system for two and half months now. I was really worried at the beginning, that my wife would end up hating the system. The fact that there were limits on everything to do with money. We had never really had limits before. We paid all our bills, and what money we had left we just bought what we wanted to. We ate out frequently, took kids to movies, and was in the middle of a large addition on our house that we were paying for as we went.

Now we only eat out a couple times a month, and not the same places that we went before. Good places to eat, but cost less. I think we have gone to one movie since we started our money makeover. And the renovation on the house has slowed down considerably. There are some weeks were we can't work on the house, because we have to wait for next months budget.

On the flip side, we have paid extra on our debts. Our bank accounts are 3 times larger due to money saved for vacation, house insurance, property taxes, gift giving, clothes, and future Pet Medicine. Expenses we might have had to scramble to get the money for if we weren't saving. Our Total Debt (that includes the house) has changed $4500 in the first two months.

We each have our own Blow money, so we can purchase items gilt free, and not have to convince the other to buy something. I personally take my lunch to work, and try not spend my blow money on sodas, candy, and chips at work. I have been saving back over half my blow money every month so that the child inside me can buy a toy some day. Not sure what my wife does with hers, but that's not my concern.

I asked my wife the other day what she thought of the budget and our new money system. She said that she doesn't mind it a bit. She said it hasn't been that big of a change for her. After talking with her, I feel like she is happy with the process, and realizes the benefits we are reaping from it. For example: She said she went clothes shopping for the first time since we started our budget the other day. She used our envelope on clothes that had been building up money. She spent $180 on clothes and it was the first time she didn't feel guilty for spending money on clothes for herself. She said it felt good to clothes shop without guilt or worry.

So the process is working good for us, and we are going to stick to it.