Favorite Way to Manage Money

(sigh) ....So I'm almost a grown up now. I can still remember telling my mom that being a grown up was over rated (I was 27 at the time...the good old days). So far I still think I am right! But there are some perks. Like making more than $10/her and having the summers off. :) I am hoping to add home owner to my ever growing list of grown up accomplishments too. But I figured if I am going to have a mortgage payment I better get my financial act together! Enter in the budget. My very good friend Anne Marie turned me on to Dave Ramsey and I read his book and bought his financial software. It's based on the envelope system, which basically tells you to spend all of your income on paper before you get it and then you know EXACTLY where your money is going. Its a REALLY good system and I highly recommend it! However I had trouble with the actual envelopes themselves. You put cash in an envelope that is earmarked for specific things like grocery, clothes, gas etc. I didn't like fumbling with the envelopes, carrying cash or trying to keep track of receipts. And then my good friend Kat recommend a computer program called Mvelopes. It's a FANTASTIC website also based on the envelope system but it tracks all your bank accounts/credit card transactions etc and has electronic envelopes that you "fund" electronically and then when you spend money it shows up as a transaction that you can "assign" to a specific envelope. It's great for me b/c I can just use my debit card and I don't have to keep track of receipts. I highly recommend it! It does cost money, but for me the convenience is WELL worth it! And I also highly recommend using a budget! It's WAY stressful at first, and I am sure I will make a few more mistakes along the way but there is a tremendous sense of PEACE knowing where your money is going. I don't put things on my credit card anymore so I am truly debt free! AND I feel somewhat empowered because I am the one deciding how my money gets spent. (sigh) Ok so maybe being a grown up isn't THAT bad.... :)