The 100 Envelope Challenge!
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- čas přidán 30. 06. 2024
- If you’ve always wanted more in your savings account, the 100 Envelope Challenge is a simple, easy-going way to put away $5,050 over the course of one year. By completing two savings goals a week, you’ll end the year with more money and less stress. Complete the 100 Envelope Challenge with paper envelopes, or with You Need a Budget-an easy, on-the-go app to organize your money and save big.
Download the 100 Envelope Challenge Printable Tracker! www.youneedabudget.com/100-en...
Timestamps:
0:00 Intro
0:26 What Is the 100 Envelope Challenge?
0:56 The Supplies You’ll Need
1:02 Prep Step #1: Label Envelopes
1:58 Prep Step #2: Make a Checklist
2:47 Prep Step #3: Shuffle and Store Envelopes
3:16 Step #1: Pick Two Envelopes a Week
3:39 Step #2: Fill Both Envelopes Within the Week
4:05 Step #3: Check Off Stuffed Envelopes
4:31 Step #4: Continue Weekly to Save $5k+
4:55 Tips for Success
5:38 Alternate Method: Skip the Paper, Use YNAB!
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Download the 100 Envelope Challenge Printable Tracker! www.youneedabudget.com/100-envelope-challenge-with-free-printable-envelope-challenge-tracker/
Or skip the step to make 100 categories, create a $5050 Savings Goal for 52 weeks out and only use the slips of paper in the basket to determine what needs to be assigned this week.
Nice idea, endlessly customizable for smaller or larger goals or time frames.
That sounds good. Then I don’t have to move the money from all the categories.
I like this better. More minimalist and keeps the budget streamlined. Thanks
There's an idea! Love that! I need the tangibility of seeing all the different "envelopes," otherwise I might get lost or lose motivation 🤪 But I LOVE how you can rearrange or redesign the challenge however you want to be more achievable for your situation!
🌻 Hannah
To add further randomness, use a spin the wheel app with numbers 1 - 100 to get your two numbers for the week. Saves paper and ink!
Hey, there ya go!! As long as it can keep track of what numbers you've already "pulled." OR... maybe not?? You could potentially save even MORE if you had a spin wheel app choose two numbers for you every week, regardless if they've been done before or not. Hmmm... gets ya thinkin' 🧐
🌻 Hannah
You could talk about worms and I would watch. You are so funny.
She’s the best!
I agree
100% agree
Absolutely agree! She got me excited about YNAB!
I literally started this exact process in late January using YNAB, and it absolutely works. I was actually considering making my own video explaining how to do it, but YNAB beat me to the punch.
One improvement: I would recommend hiding the individual "envelopes" categories as you fill them, so you can't see how much you have saved. That makes the "unstuffing" at the end of the year more fun...and also removes temptation to pull that money and spend it elsewhere.
Hey now, that's brilliant! Get em out of the way once they're stuffed, and that way you can also start to see your 100 Envelope Challenge category group shrink more and more overtime, which adds some extra encouragement and motivation. Love it! Thanks for sharing Michael!
🌻 Hannah
I get paid on commission and have been saving for kitchen appliances. I knew I wanted to focus on this, but money wasn't finding its way to the appliances category each month. Decided to put the 1-100 boxes in YNAb, collapse the group and pick a number or two each time I get paid, depending on the size of my check. That way, no pressure, no failure. When I enter the amount as funded, I change the number to the date I paid it ($2 - 7/24/23) so I can see how long it will take. If I can figure out how to budget it, I'll pick a biggie. If not, a smaller one. This eliminates the stress of needing the money and quitting. I have a choice each time. But turns out knowing what I'm saving for is helping me feel good about shaving the money off of other categories and focus my attention. Also, doing it along with paydays is helping me schedule when to do it and look forward to it, like a reward on payday. Until this video I never figured out how to do this in Ynab and was super reluctant to have cash in envelopes around the house. This is working great for me! Also - LOVE your videos!
I'm doing a 52 week challenge with my bank. They pull $1 the first week, then $2 the next week and so on. I show it in my YNAB app and it goes to my Emergency Fund. It's only around $1400 per year but still is an easy way to save some extra. I'm living off half of my income right now so I can pay off my house...282 sleeps and counting 😂🥰
Whoa, fascinating!! That's pretty cool!
🌻 Hannah
Think I'm going to start small to get into the habit. Starting in August there will be 22 weeks left in the year, so that will be 44 envelopes resulting in $990. That'll be a good amount to add to the emergency fund. Then January - the BIG challenge! I will use YNAB, b/c at least keeping the money in the bank earns a tiny bit of interest.
This is fun, ty for sharing! 💜😎
Gonna do this too, great idea for someone on a tighter budget!
Not sure if I can do the 100 envelope challenge but I'm going to do a 50 one on Ynab, this is going to be fun!
Go for it!
Then there is the challenge (I don't know what it's called, so I am going to call it the 52 challenge) where you save 52 dollars the first week, 51 the next and so forth all the way to 1 dollar the last week and you should have 1378 dollars saved (plus possible interest, obviously) at the end.
EDIT: Apparently it's called 52 week challenge. And you obviously can start by saving one dollar first, but this way you get more interest.
I only have one category named "the 100 envelope challenge" and I put a savings balance target of the total amount with no due date so I don't get bothered by the yellow/orange warning! 🤣
Another option is to try to save $101 a week. Essentially choose an envelope from the beginning and one from the end. 100/1, 99/2, 98/3... this way you won’t get stuck with 99 and 98 and throw in the towel. Have a $5050 main category with a target as well as a $101 category. At the end of the week, move what you collected to the $5050 category and start saving for the next week. If you only save $90, then maybe you can find $11 to make it up in a future week. Seems more attainable to me.
Heyyyyyy, there's an idea!! Smart way to avoid those heavier weeks. BUT, I don't know, something in me also loves the idea of randomly getting surprised by a week where you pull the $2 envelope and the $18 envelope. Keeps you on your toes and from never getting too comfortable!
🌻 Hannah
I gamify my savings a bit differently. I have a category for absolutely everything I want, even pie-in-the-sky fantasies. I put a little bit every month into these categories. Some of these categories will take so long to finance that I will not be able to achieve these goals in my lifetime. For example, I am 628 years away from being able to buy a new house with cash. But these categories work as a backup savings plan, and if my fortunes ever change, I might be able to actually reach these goals.
This should be fun! Gonna be tough, I think. Thanks for showing the “In the YNAB” version. I’m going to try it in YNAB.
We started this but I didn't have a firm plan for the money. It was fun to try and stuff as many virtual envelopes/categories as fast as our budget allowed. As it turned out, our income changed for the worse and having the extra money saved helped us stay ahead. I still want to restart the challenge but I think we'll have to go slower this time. Essentially this challenge turned into a bigger emergency fund which is great because just saving for an emergency fund was boring and this challenge made it fun 😂
YAY!! That's so great!! Sometimes things don't pan out the way we plan, but for an even BETTER reason, like keeping you afloat when times got a little rocky. So glad to hear that, and best of luck to y'all in the future!!
🌻 Hannah
I haven't tried this but I feel like it would be way easier in YNAB since already using it =) Fun thing to try!
I'm defs gonna give this a go, but so I don't freak myself out i'm doing it as a 50 envelope challenge
It seems a lot of people are giving a 50-envelope challenge a go, and I think that's a great way to start! You'll still save tons without the extra pressure!
🌻 Hannah
I got 8 people saving on challenges at my work 5 of us are doing. The 100 envelope challenge which are doing in 3 different ways lol I have drawn 100 envelopes numbered them and then we color them in when the coin gets flipped on them every Tuesday payday for three of them. My friend Raul does 101 he doesn’t like the chanciness of it. And I did 150 for my initial and then 100 every payday so we’re having lots of fun and being amazed at how we can save
Wow! I love the group effort! That makes challenges so much easier-getting to do them with company that can encourage you and keep you accountability. Thanks for sharing! Awesome group you're a part of!
🌻 Hannah
It sounds like a challenge! I’m going to give it a try on YNAB. Thanks, Hannah! 😁
I love this! So excited to start the challenge and save $5,000 :D
WOOHOO!! You got this, Sarah!!
🌻 Hannah
I created the 100 Envelope Challenge Category in YNAB and 100 sub categories for each amount between 1$ and 100$ (with their own specific target). I used a Random App to identify the amount I'm putting in the challenge every pay or when I decide.
However, at one point the challenge started to bug me as I didn't know what job to give those dollars. Great to see the amount growing, but for what? I didn't feel attached to it as it didn't have a job (YNAB: what have you done to me? LOL). And, while I was driving thinking about it, I had an idea: I will give a job for the first thousand dollar accumulated! So, once I hit THAT target, I put 1000$ on my mortgage! The second thousand will be on the next car. For the third, I'll decide about it when I'm there. Oh! And I delete the subcategories once I moved the 1000$ to its new job. :-)
I felt this challenge became more interesting once I tweeked it that way!
Welcome back! Oh how I’ve missed you Hannah!
Great idea! I am going to do a variation of this to pay off my car. I am numbering 100 pieces of paper right now and paying the amount on the paper to my car payment each week. It will not take a year, then I can pick a different project. This will be fun! 🚗
YES! Someone else mentioned they're going to do this too, and that is BRILLIANT. And immediately gives those saved dollars a job which, of course, at YNAB we LOVE!! 😍
🌻 Hannah
Love this idea! No idea if I can pull this off, but I'm certainly gonna try :)
Currently set up all the categories in YNAB and I'm at number 30 of the pieces of paper I'm putting in a box. Excited!
NICE!! Way to go Marjolijn! You can do it!
🌻 Hannah
yep doing this and found colorful envelopes on the Company Store(tm) site I will get for it.
great video!
Here's how you know Hanna bullet journals 🤣
Oh how cool- I've kinda let my ynab lapse... I don't want to think about all the catching up I'll have to do. May be easier to start over
A fresh start is super easy and very satisfying if you're into that kind of thing 😂
Especially as YNAB starts from now, not all the ancient history
A fresh start - you can do it!! ☺️👍🏼🎉
No need to play catch up or start completely over. Instead jump back in right where you are... Draw two envelopes and keep going.
I started back in April. And I love it. I'm doing it cash though
Is it easy to keep up with? I feel like id start it and 3 weeks later be bored of it
@@melissaquesnel1603 you have to make it fun for you. I like to see all the colors of the numbers i have already filled, it's a great motivation. I also make sure to budget the money for this challenge. Make a plan and stick to it
This is brilliant. I’ve always wanted to do this challenge but I didn’t like the idea of missing out on the interest.
good challenge!
I think this is a great idea! I'm thinking of doing it as a way to pay off debt faster.
I love that! Not keeping the money tucked away in an envelope, but turning those into extra payments on your debt! BRILLIANT.
🌻 Hannah
Spend a few bucks first and get a large fireproof envelope on Amazon. Also, this is a fun video. :)
Shuffle shuffle "Ayyyyy" 🤣
I love Hannah’s quirkiness so much hahaha
❤❤❤
If you don't want to write out 100 envelope you can write 100 then 99/1 98/2 997/3 etc 50/50. This allow you to put 100 dollar bill into each envelope and check 2 off the list at once. And make it 50 envelope instead of 100.
I like the idea in spirit, but on average I would be putting 420 euro in envolopes every month.
But on an average month, I have less than that left after assiging all my mandatory categories. These categories do also include some saving, like a fund for when my dishwasher breaks down, but I don't think it's a good idea to forgo stuff like that to do this challenge.
I'm totally in.
Totally going to try this but will only use the even numbers up to 200 as my country's currency (NZD) is well above the USD. Thoughts?
Oh, not too shabby of an idea! I hadn't thought about the conversion rate of other currencies! The goal is to truly challenge yourself, but you still obviously want it to be an achievable goal. So if 100 is too low for NZD and 200 feels hard but still doable, go for it! That's the perfect balance!
🌻 Hannah
I thought I couldn't do this because I already have many aggressive savings goals, but I have nagging debt too. I think I'm going to try this to pay my car loan down. How cool it would be to pay down that principal AND reach my other savings goals! It will be a stretch, but why not try?
WOW!! I totally agree!! We never know what we're capable of until we try! And worst comes to worst, if you find it's too much to handle right now, at the end of it all you'll have a little extra cash tucked away that you could use for WHATEVER you want!! Proud of you, give it a go!!
🌻 Hannah
Unless I don’t want to eat or pay a bill, this would be pretty impossible for me. I’m not negative or pessimistic, but just honest. I loved the video though. You are so funny…when you dumped the pens out I almost lost it !! 😂😹
I’m going to give it a go but I’ve got ten batches of envelopes numbered 1-10…wish me luck !
You could scale it back by shifting the decimal point one spot to the left. So if you pull 25, you would set aside $2.50 instead of $25. 10 cents instead of $1.00.
@@elizabethman7313 that sounds like a great plan for people on a tighter budget. Great job!
Love that idea, Laura! It'd still save you over $500 extra!!
🌻 Hannah
@@elizabethman7313 Great idea, and Good LuckI think I’m going to try it this way…wish me luck as well!
What if we did this every 2 weeks when one gets paid and you pull 4 numbers? Should work the same yeah?
Yeah! Absolutely put your own spin on it or manage it however you want! My thought is that I wouldn't just be taking money directly from my paycheck (or my "Ready to Assign" category) and moving it to my "envelopes" in my budget-instead, I'd be shaving money off some of my other categories (like coffee or fun money or dining out or gifts) here and there to fill my "100 challenge envelopes". Also I'd ideally be trying to find ways to make money in other places, like selling unused items on facebook marketplace or picking up odd jobs here and there!
🌻 Hannah
Who uses cash these days? Gonna do it in YNAB. ;)
Judging from what I've read in these comments, a lot of people do still.
I have a potentially obvious question. I'm going to try this challenge on the app (no cash/no paper). If I've already assigned all my dollars from payday (bills/savings/misc/etc), is the idea that when I pull my two numbers weekly that I should be transferring the funds from other budget categories?
There are a few ways! I always play a little game of "shave and save" with myself, where I shave off $10 from this category, $5 from that category, and just shave off tiny amounts of money here and there until I've scrounged up all the money I need! The "move money" feature makes this really easy to shave money off one category and send it to another.
Another way is just to seek out additional ways to bring in extra cash during the challenge. Ways I've made extra money in the past:
1. Selling clothes or items we no longer use on Facebook Marketplace (now that you can list your items with shipping to the WHOLE COUNTRY, I found almost anything I listed would sell within a day or two)
2. Pick up a petsitting/housesitting job for another family while they're out on vacation
3. Temporarily cancel normal spending I would usually do (like my razor subscription, skip a month of audible, etc)
4. Reschedule my coffee dates with friends at coffee shops to be coffee on my couch instead!
Just some ideas to get your creativity flowing!
🌻 Hannah
@@YNABofficial Thanks for the tips!!
Just started cash stuffing this month, so much work but worth it! Lol
Way to go for putting in all the work! If you ever get tired of stuffing all those envelopes, YNAB is the envelope system made digital. You can check out this video where I break it down for you! So if you find you like the cash envelope system but not carrying around cash or having to take a night to sit down and stuff all the envelopes, give YNAB a whack!
czcams.com/video/joRaNp3pRTI/video.html
🌻 Hannah
@@YNABofficial we actually got YNAB last month too, we’re doing a hybrid budgeting system! Thanks so much!
She is really funny. I like watching her.
Thanks friend!! Your words are so kind to hear!
🌻 Hannah
I'm on my first month. I'm doing four a week because I'm trying to challenge my mindset to go etra harder so that way I will be done by the end of February
Dannnnnnng 🤯🤯🤯 You're puttin' in the REAL work! Way to go!! Don't forget to be gracious with yourself if there's a ever a week you need to slow down a bit... you'll still be LIIIIGHTYEARS ahead of the rest of us 😂
🌻 Hannah
Just made a Category group, and 100 categories in YNAB. 😂 Let’s do this!
WOO HOOOO!! What a fun new challenge for the new year!!
🌻 Hannah
Hannah you are my favorite and look forward to each of your videos. This is a clever idea but I couldn’t get past the idea of purchasing and wasting 100 envelopes. From someone who minimizes the use of paper and reuses it when possible, a would think about better way can be found. And put the few dollars paid for the envelopes into saving money for the challenge.
I totally get that! Though I will say, as a more tangible person myself who often likes to work with concrete objects over digital elements I can't hold or feel, the envelopes aren't being wasted-they'll be storing your saved cash and doing their job for a whole year or longer! That's a longer life span than most envelopes.
BUT, you could also reduce waste by sticking your saved cash into *one* big envelope instead of 100-absolutely. We can all put our own spin on it and tweak it to work best for us! The internet just thought the "100 Envelope Challenge" was catchier than the "One Big Envelope Challenge" 😂
🌻 Hannah
if you're doing the paper version, when you go to get the money for that week out of the ATM, how do you log it into YNAB?
Hmmm... in this case, I would probably still make a "100 Envelope Challenge" category in my budget, but just one category for the whole thing. Since we normally assign allll of our dollars to all our different expenses in YNAB, you'll need to move money out of categories and into your "100 Envelope Challenge" category in order to "scrounge up" the extra savings. So, for example, if you draw the 30 envelope that week and decide you're gonna shave $20 off your clothing category and $10 off your groceries category, move that money from those categories and into your "100 Envelope Challenge" category. Now when you go to the ATM or bank to withdraw, you can categorize that $30 withdrawal to your "100 Envelope Challenge" category. That also helps later when you want to look back at reports or track how much you've actually withdrawn for the challenge.
Hope this helps!
🌻 Hannah
@@YNABofficial yes, a huge help! thank you!
Ugh great idea but feels impossible for me right now. I'm currently doing the more money challenge and realizing there isn't really a whole lot of fat in my budget mostly due to caring for three senior pets. The idea of saving $500 this year let alone $5000 makes me want to laugh and cry.
Failed to tell us where you get the money from😂lol ❤
I have a monthly paycheck and it's will be difficult to have 8 enveloppes to save... Any tips on how to make it work ?
Monthly pay also. I use my change money to stuff an envelope. I'm on envelope 27 but only have $5 in it at this time. I give myself a year and got 30 envelopes filled last year. I am working on 50 this year. I also budget larger amounts than is need. My phone bill is $133 but I budget $140. Before I started this savings challenge the $7 went to a buffer/cushion for account. Also there is an app that lets me play games to get a discount on the bill. That helps me fill my envelopes.
But picking up all those markers off the floor. 🤣
Yeah, that took a second 🥵
🌻 Hannah
I love Hannah and her videos (and her cute American accent!) but I admit I watched this one in disbelief as it runs absolutely 100% against every principle YNAB stands for!!! In particular, assign every £ (or $ for US clients) to do a job and at an even more basic level - set up a budget. Absolutely the last thing you should do is throw in a hefty random amount every week - requiring constant tweaks, reassignments, chops and changes to your budget. The only way it could sensibly work is if each envelope is £50 (or $50) - then you can budget it. Personally I would just assign £400 for my emergency fund or longer term savings - wow maybe us Brits are just boring!
Hey! TOTALLY get that! I probably should've mentioned that my game plan for the challenge would be to shave money off my other categories to move to my challenge envelopes. If I drew the $44 envelope, could I steal $10 from dining out, $10 from miscellaneous, $10 from household items, and $14 from my fun money-stuff like that!
I'm also seeing a lot of encouraging comments from other viewers that are immediately giving those saved dollars jobs, like making extra payment on their car loan with the money or putting it aside for a future vacation! There are lots of ways to spin the challenge and still stay safely within the rules!
But I like the way you think 😎 The method truly is everything, so it's important to still apply it even in odd one-off situations like this one.
🌻 Hannah
@@YNABofficial Thanks Hannah - I can see the fun of it and who doesn't like playing around with coloured pens and lucky dips ... and thanks for the explanation! I must admit that since I bought YNAB in January, I spend way less time on my personal accounts than before - a bit of a splurge when the month rolls over as I do all my assignments and then next to nothing until the next month apart from a bit of reconciling (which since all my accounts bar one are linked takes no time at all). Damn it, YNAB has removed all the spontaneity of robbing Peter to pay Paul at the end of the pay month - and I am enjoying the tranquility of it all! So cash envelopes is probably not for lazy me! Also the greatest benefit YNAB has given me is it has cured me of what I call the Illusion of Savings (where my savings a/c crept slowly up but actually I was slowly becoming worse off as checking accounts and credit cards groaned quietly in the background!). So your other videos on savings, debt reductions and credit cards have really done wonders for me! Therefore, a big thanks from me 🙏
@@YNABofficial But when you move money from one category to another it nags you that you have under funded a category. Right? Do I not know how this program works? LOL! I am new and trying to learn how to utilize it to fit my budgeting style! And I like being able to move money around from discretionary category to discretionary category. But I have not figured out how to do that yet without it then telling me that I did not put enough money in my "grocery" category or whatever category I take the money from.
I'm confused how this works within the four rules? When I get paid, I'll give every pound a job, so how would I do this with an unspecified amount? Am I missing something?
I like the idea, seems a novel way to put money away. Just not sure how it works within the processes that are often promoted?
Do you have categories that are variable? Maybe I pull money out of my "Coffee" or "fun stuff" category. Or maybe I try to shave off 20 bucks from the grocery bill. Or maybe at the end of the month/pay period I see if any categories have $$ left and relocate it to the challenge area. Or maybe gig workers take an extra odd job to get the cash, etc.
@@marnie8007 Yeah for surely but I can't say I'd have an extra £100-£150 a month to pull out of eating out or entertainment budgets which tend to be relatively low anyway. It's a nice idea, just don't think it's one for me and my income
Hey Mostynia! Great question! I would personally wam this money from other categories, OR find a way to bring in more money. We usually have a few monthly categories where we don't spending the whole amount (like dining out, hospitality, gifts, health, or personal care) and I might steal a few dollars from each category to meet my savings goal for that week. Not only will I be saving that money, but I'm also being challenged to spend *less* in other categories (but in a practical, achievable way).
BUT, I've always gotten a rush from making extra money from little one-off sources, like selling unused items on facebook marketplace or dogsitting for someone while they're out of town or offering up my video/editing skills for small projects other people have.
The point of a challenge is that it's challenging, right?? It stretches you, makes you get creative and think outside the box, and this challenge does just that!!
But also, this challenge isn't just for YNABers-it's for the world! So I imagine there are many many more ways of going about it that don't involve the YNAB method, as well!
🌻 Hannah
I've seen a lot of creative ideas in the comments if you want to browse those as well! Someone is just doing a 50 envelope challenge ($1,275 in savings), someone else is making ten sets of envelopes marked 1-10 ($550 in savings). So you can put your own spin on it and still take a whack at it if you want! The 100 Envelope Challenge has just been circulating for the last year or two, so I thought "why not share it at YNAB!"
🌻 Hannah
@@YNABofficial Hey Hannah, thanks for the direct reply. For sure, I suppose the extra income idea would be best, or maybe I'm a smidge too inflexible with some categories. Or...probably not spend max in each category each month...
As I said, not being mardy about it - it's a great idea! Just thinking how to possibly make it work 🤔
If YNAB web site becomes slow within next week, I'll know why hahaha
😂😂😂
🌻 Hannah
Sorry but I just can't with saving challenges like this. Do the math and it's essentially putting away $400 a month, which is unrealistic for most people, even if you're determined to do it. And breaking it down by the week is silly too. If you earn bi-weekly, then you might as well just combine two weeks of the challenge per paycheck. Cause in YNAB, you budget everything when you get paid, so there's most likely not going to magically be some freed up money the next week to assign to an "envelope".
Who pissed in your cereal? If you’re saving for a trip, this is a fun way to focus those savings for folks that want to do this. If you can’t do weekly, then you do it bi-weekly. Maybe there’s a category that you can swipe that had extra money in it. Can’t do it in 52 weeks? Then make it 100 weeks.
Nothing about this is silly. If it doesn't work for you, don't do it. The thing is to make it a game or a challenge so that maybe you can think about your budget and see if there is any wiggle room or categories you could skim extra money from. No need to diss an idea just because it won't work for everyone at the same time.
Squatch bag... 🥏
Yeah, baby!! Mac went with the forest bag with orange detailing :) YNAB really helps you get anything you want!!
🌻 Hannah
She funny as hell
😂 Thanks, friend!!
🌻 Hannah
BTW your printable tracker has 110 coins on it, not 100
Lol... whoopsies. Well, more money in the end, I guess!! 😂🙃
🌻 Hannah
Jesse: So Hannah, what did you accomplish today?
Hannah: I shot the video for the 100 Envelope Challenge!
Jesse: Anything else? Did you edit it?
Hannah: Nope, that's tomorrow? Do you want to see the unedited footage first?
Jesse:
😋🤣
This makes no sense to me. Almost no one has that kind of cash laying around so you're taking it from your bank account and at the end you have $5000 that you then put back in your account. How did you save any money? You basically decrease your balance gradually only to put it back in? I just don't get it.
It makes sense if you live by a budget! With YNAB's budgeting method, we give every single dollar we have a job it's going to do for us by divvying them up into certain categories-we decide $X will go toward groceries, $X will be for clothing, $X is just for fun money. When I do the 100 Envelope Challenge, I will shave money off of those other categories in order to put that money toward something new I want to save for.
For instance, if I had $80 in my clothing category, but I need to stuff a $20 envelope, I might shave $20 off my clothing category for that month and move it into my challenge envelope. Now I know I have $20 less to spend on clothes this month, and I have 20 MORE dollars that I can put toward my new savings goal! If you continue to live by the budget, you will ultimately be spending far less money and saving far more.
At the end of the challenge (or during), I can put my money saved from the challenge toward a whole NEW category that wasn't even in my budget before, like a trip to Europe or create a new budget category for "Our Daughter's First Car."
So, in the end, your budget is helping you spend LESS and save MORE toward a new goal that you didn't have any money toward before. I hope this makes a little more sense!
🌻 Hannah
ρɾσɱσʂɱ 😎
Didn't Office Depot go out of business like 10 years ago?
Not in my town!
🌻 Hannah
If I don’t pay my cell phone bill and water, I will cover those envelopes. 🥹 Oh, that’s not how it works? 🤣
Also, reuse those envelopes for the thank you cards. 🙌🏽 I’m sure folks won’t care they were written on. 😬
It would be funny to give them a greeting card in an envelope with a random number on it. Don't say anything about it. Just pretend it's perfectly normal.
😂😂 I'm sure it won't spark any questions whatsoever 😂
🌻 Hannah