Saturday, August 21, 2010
Unlike our grandmothers and grandfathers, I have started what I call the envelope method a bit different from how they divided their money. When grandad would get his check, they would divide their money and put it into various envelops for the electricity, rent, food...
My idea has to do more with organization and keeping an account of spending. There always seems to be something that is needed like milk, or pencils or WD40...
I bought a cheap box of envelops at the Dollar Tree. Everyday, on the front of the envelope, I write small headings at the top:
Spiritual Family Friends Home Self Business
Under each title, I write down the items I need to do for each heading and cross off when I am done. If I didn't get the agenda done, I write it the following day on the next envelope. I also include the day and date written on the bottom of the envelope. Any purchases I make that day: gas for the van, a gallon of milk, socks, school supplies etc. I put the receipts in that envelope. This is a great way to keep your receipts without losing them and helps you keep account of your spending per day. Many organizers and money experts teach you to keep an account of your daily spending. This helps show you if you are over spending and on what. If you need to return something, you have the receipt, and at the end of the year, if you do your taxes, and many of these receipts may be helpful as tax write offs.
Losing receipts can be a problem. So many times I would want to return something and didn't have the receipt. I could only then do a fair trade or get a gift card and not a money return. Most of the time, you need the money so try this. Just put the receipt in the envelope after every purchase and cross off those accomplishments for the day. See how much you have really gotten done.