Budgeting

[Rob Walker]

>>>>> On Sat, 25 Nov 2000 19:46:27 -0600, "Thomas D . Jordan"
>>>>> <ace@programmer.net> said:

Thomas> As far as budgeting goes, I like the envelope method the best.
Thomas> You pre-allocate the money into a virtual envelope that is a
Thomas> sub-account under your bank account (checking).

Thomas> When money comes in through an income account, a filter script
Thomas> could be run to allocate the planned amount into the envelope.

just a big split which would remember the old ways, and help us along
to the current way.

Thomas> What do you think?

For the first three months of our marriage, my wife and I did exactly
this.  It worked great.  I cashed my weekly paycheck in to five dollar
bills, and later that day at home, we put the appropriate number of
five dollar bills into the appropriate envelope.

She took the grocery envelope to the grocery store, and wrote on it
while in the check out line.  We paid our rent in cash out of the rent
envelope.  

I think that this is one of the better ways to set up a budget, since
you get a very good feeling for exactly what you have and when and
where and why.  We deposited $$$ into the bank for the utilities.  

Later on we "graduated" to a book which had the categories on linedd
notebook paper, but it has never worked as consistently.  I think it
is due to the tactile feel of seeing the $$$$ there in front of you as
you accumulate and spend it.

rob