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Taking Steps to Move Back to the Envelope System

May 17th, 2018 at 04:41 pm

I went to the credit union today and took out $475 in cash to fund 3 of my envelopes. I put $175 into the groceries envelope, $50 into the household envelope, and $250 into the medical envelope. For medical I am going to start using an old checking account at a different credit union. I took the $250 there this afternoon, deposited it, ordered a box of checks, and ordered debit cards. They even had some pretty checks that were the same cost as plain ones. I chose an American flag with the bald eagle soaring in front of it. I didn't think my husband would fancy the butterflies. Big Grin So that took $16 out of the medical account right there, leaving a balance of $234.

I tend to write checks for medical except prescriptions. We have been using the credit card for that because we usually go through the drive-thru and it is easier than trying to write out a check on the steering wheel. So we will use the debit card for prescriptions once it arrives. That way DH can have a card, he usually picks up the medicine, and I will have the checkbook. That debit card will be used only for medical. It just makes it a little easier than playing with cash and not having a paper trail. I need a paper trail for medical if we need to deduct again.

I will be funding the medical account with $800 every month, with $200 coming out of each paycheck starting on June 1st. That should cover co-pays, prescriptions, and allow us to save for DD's surgeries. This does not include the amount for the chiropractor which is a monthly set amount for the entire family and I will just pay that out of regular checking. It has it's own budget category.

When the medical account reaches $1000 I will send any additional to the online bank and earmark it for medical on the spreadsheet. I'm not sure when they will let DD have her surgeries, not until her BMI is 40% however long that takes, so the extra will go to save up for that. But whenever the account drops below $1000 I will start adding money back into it. I am not sure how much we really need to set aside for medical. It varies so much in a month. This month alone has 6 co-pays, not to mention the numerous prescriptions.

Because we are switching over to mostly using cash and checks, I am not sure we will be able to make a payment on the loan to Mom until June 8th. I figure if I make the $500 payment towards the beginning of the month, then I will have to stick to the budget the rest of the month. If there is any extra at the end of the month of June I will tack it on to the July payment. If I treat it like a bill due the 2nd payday of the month, that should keep me on track.

I think I'm going to like this Gazelle intensity thing. Even if I can't do it 100% like Dave Ramsey, because we have to keep the EF at $6000 instead of $1000 for upcoming medical reasons, I am trying to focus in like we are. And really, we are. The EF is $1000, the medical fund is the rest of it. Once the surgeries are over than we can be fully doing it, but I don't know when that will be. I guess until then it will just have to be baby steps. Yeah, I saw it. Did it anyway.

2 Responses to “Taking Steps to Move Back to the Envelope System”

  1. Amber Says:

    I went back to envelopes as well, sort of fell off the wagon. For any upcoming medical expenses, I opened up an Capitol One 360 checking account with a debit, each pay period I add a little something.
    I like the fact that you are gazelle intense about the upcoming medical expenses

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