How Real Budgeting Looks In Our House

I get tons of questions for more information on exactly how we handle budgeting around here, so here's a quick overview of our monthly budget planning.

We by no means have it all figured out, but this is what's worked for us for almost twenty years . . . maybe it will help you too!

We started years ago using the Financial Peace envelope system, however, at least for our family, keeping up with cash for every single item was just difficult to manage. So, here's how we've tweaked it to work for us:

• Every two weeks (on Friday), we withdraw cash for groceries, dining out, and entertainment
• Once a month, we have an automatic withdrawal taken out of our checking account and deposited into savings for other specific items (keep reading)
• When we need one of those specific items, we transfer money back into checking from savings to cover those expenses.