Dave Ramsey- You should try it!

amother

Red

Sun, Aug 04 2019, 6:21 pm

ibelongtosomebody wrote:

How can I implement the 'envelope' system with my checking accounts? Is there a way to have, say, 10 linked checking accounts? 1 groceries, 1 clothes, 1 bills, etc.? Anyone have any suggestions?

I would love to do this, but my bank charges per account.

amother

Aubergine

Mon, Aug 05 2019, 9:26 am

Any advice to families with self employed income? Dh has business which is completely unpredictable. How do you budget with unknowns?
Even "good months" are far from great so can't save for the "bad" months

TranquilityAndPeace

Mon, Aug 05 2019, 10:49 am

amother [ Red ] wrote:

I would love to do this, but my bank charges per account.

I have several accounts on ally.com. They are free. It's savings accounts, not checking accounts though.

I'm a photographer, and after every session I put some money into my "new camera/computer" account. I know I'll need new ones every few years, and they are pricey. I also have "business savings" where I put some money after each session to save for big investments like education, studio updates, etc.

baby12x

Mon, Aug 05 2019, 11:27 am

TranquilityAndPeace wrote:

I do this with Capital One 360. I have savings accounts for Yom Tov and Clothing, Emergency and Dental (unfortunately something that comes up a lot for us).

I call it the Modern Envelope System (https://adimesaved.com/budgeting-with-an-envelope-system) as having cash for those things doesn't really make sense. 1. I don't like to have that much cash around 2. I do shopping online 3. This way I can use my credit cards responsibly and get points and perks

baby12x

Mon, Aug 05 2019, 11:31 am

amother [ Aubergine ] wrote:

Do you have a regular income?
If yes, then your income goes to pay bills and his goes to pay for discretionary exenses like clothing etc and you make do with what you have.

Otherwise, add up all your bills. Try to calculate how much you spend on groceries etc. This is your base. Every month, any amount that you make over your base goes into a "sinking fund" to cover a month where you don't make your base. You do this until you either always make your base or have enough money in the fund to cover a few months of lower income. Then you can spend more money or put aside for big purchases.

If you are constantly making less than your base then you have to reevaluate. Either cut your expenses or get a new job.