sbv, 1 year ago

I’m really lazy, so I use the jar method (they article calls it cash stuffing or the envelope method). But I use multiple accounts and automated transfers.

Basically: I have one account for personal spending, one for bills, one for insurance, one for groceries, one for vacation money, etc. I get paid regularly, so I have automated transfers move money into the appropriate accounts.

When it comes time to make an expense in the given category (e.g. insurance), I pay it out of the appropriate account.

The benefits

1. I don’t need to think about it after it’s set.
2. If I overspend in a category, it doesn’t reduce cash available in other categories.
3. It’s easy to tell if my budget is wrong: ie, if an account is building up cash, or doesn’t have enough money, it’s time to revisit the budget.

The first item is the most important to me. I’m not consistent enough to manage a spreadsheet.