Ask:
I know alot of you are doing the envelope system so this might be easy for you to answer as well....
Do you set a budget for bills each month? What do you do with any extra money (if there is any) if you budgeted too high..Say you budget $100 for the electric and it comes in at $80...Do you just leave the $20 there, do you apply it towards something else, or do you put it into savings?
I'm trying a new budget, and I always assume high...That way there will be some left over, but I don't know if it should be applied to the next month, or put it in savings...savings is the logical choice, as there is practically nothing in there to begin with. But then I wonder what if I'm short next month, etc...
I suppose what I'm asking is what do you do? I need a good system that is easy and I can stick with (I pay everything by check or electronically, no cash)
Thanks!
Answer:
I guess, for us, we know what we will have to pay during Nov. Meaning we just got a bill and it is due in Nov. that is how we determine it. Does that make sense?
I would recommend putting it into savings tho until you have built up a decent emergency fund.
Good luck!
Rachel
Answer:
OK I don't know how everyone else does this, but I also do the bill budget. Like your example, I budget 100.00 for electric each month, like this month my electric bills was only 75.69! (woot!! The summer price ended) Well any way. I still send the full 100.00 to electric co.
So now I have a running credit with them, that leaves 24.31 credit. I do this year long. When summer rate go up, this really helps off set the bill. Or lets say I over budget for 5 months build up about 100.00 and something happens and I can't pay one month it's covered and I don't get electric shut off and have to pay a reconnect fee
This may not work for everyone, but it's helped us out more than once.