Trial Run Budgetting

My husband and I are currently staying with parents to save up some money for a new house. We have had some financial freedom from our current mortgage since we are renting and we are not currently having to pay for certain bills we would need to being on our own. 
   We have taken this experience to get us ready for a budget that will work for us when we do find our new home. So with that being said i'm sure you are all wondering where I am going with this! Well, we are fixing up a budget of weekly expenses. We are going to use the envelope system because it seems like it would be best for us. We are the type that if there is money in the account, we will spend it and not watch the budget. 

So payday I have set aside categories for weekly expenses and broken them down into envelopes. On payday we pull out a lump sum for the budget. I take the car payment and divide it by 4 weeks, cell phone, internet, storage, and anything else that is monthly. I take that 1/4 payment out each week so when we hit the payment due date, its all in the envelope ready to mail in and there is no taking it out all at once or pulling from savings to add to it. We also have envelopes for groceries, my couponing budget, eating out budget, and misc budget(clothes, gifts, etc) and put money in those too.

So how do I use them?
Well when I get the grocery ads I sit down and make a menu for a week on whats on sale and what I have in my pantry. ALWAYS SHOP THE PANTRY/FRIDGE/FREEZER first. You would be surprised how many cans I have of diced tomatoes and instead of checking the pantry before shopping, I come home with more than I needed. We plan all of our meals (breakfast, lunch, dinner, and snacks) for the week so that we know exactly what we need when we hit the store. I hate going to the store mid wee because I forgot to buy something! Its frustrating and a waste of time. 
Anyway, I make up my list of everything we may need for the week. We pull $100 a week for groceries and we stretch it for all the ingredients, juice, soda, staples, meat, etc. When the money is gone from this envelope, it is gone. So I try to find meals that some may not have meat, or do a sandwich day or I look for good meat deals! I have done this the past 2 weeks and stayed right on budget, i'm feeding a family of 6 right now so $100 a week I think is decent.

We also have a eating out budget of $20 a week. Once the money from that envelope is gone, there is no more eating out until the next week.We even try to not eat out for the week and take that $20 and put it in a vacation fund, Christmas fund, or something else.
 I also budget out for events that might be happening for the week such as this weekend we are going to the Circus. I have $40 in the envelope for this adventure. 

The reason I am budgeting the way I am with taking out the money for bills and the weekly things is so we don't go over board while we have a little financial freedom. I want to put more money in savings than spend it. So far it is helping and getting us ready for a tight budget for when we do have a mortgage again. I have been making dinner every night at home, making breakfasts for my family, and snacks. Homemade cookies and using extra dough I can throw in the freezer for a later date, i'm also making breakfast sandwiches, frozen meals, and putting crock pot meals together for even easier dinners. 

I have learned that if there is no meal plan for dinner, we usually will eat out or resort to sandwiches. I have also learned that when you take out money for bills every week to put back until they need to be paid, that money won't be spent and your less stressed about having it in the account. If any money in the eating out, grocery, etc envelopes is left over after the week, it goes into another envelope I call the Over Budget Fund, or you can even do a Vacation fund, Christmas Fund, etc.. You won't realize how much your spending until you take it out as cash and when you come in under budget because your more aware of what you need to buy, you have some left over that can go for fun things! I will start next Thursday posting my meal plan for the week, my shopping list, and recipe list and updates on how we are doing. If you have any questions just email me and I will be more than happy to answer them! Sorry this is long and i'm sure drawn out but It's a process. Oh, and whatever money is left at the end of the week in the account goes straight into savings. There are things you might need more than your budget allows and that's okay, the reason for a budget is so you are more aware of what your spending and what your spending it on. 

I read somewhere that it is harder to hand over cash from your budget, than to just swipe your card. So give it a try and see if it helps you in the long run. I will be back to update soon!