We began using a virtual cash-style envelope system at the beginning of this month (June 2012) and have been doing fairly well with it. This month has not been kind to our budget, causing me to shuffle money between envelopes like mad.
There have been way too many large dollar purchases like Katie’s birthday party and our winter CSA share. Next month won’t be any better with the local pastured hog and beef order from our farmers coming in. Still I am able to actually see where our money is going and compensate for it by restricting purchases in other areas.
We not paying off a huge amount of debt yet, but neither are we piling it on a credit card.
Here are the 5 most important things that I have learned so far using the new budget system: …