A simple, envelope system works best.

Today was pay day (sound the trumpets!). The first pay day since my declaration of war against the intimidating 20% home loan deposit. I’m determined to shoot down my bills one by one and inch closer to my home loan target.

With the family budget in hand I took an early morning trip to the ATM to withdraw some money for our fortnightly expenses. For this we use the age old envelope system to stay ahead. The envelope system is truly one of the worlds greatest inventions – I swear. I remember watching my mother use it to pay off “Christmas lay-buys” during the year for the kids, and it works just as good today as it did back then.


Money set aside carefully each fortnight in labelled envelopes allows the household to plan and manage exactly where its money is going, with the added certainty that the dreaded bills will always be paid for on time or in advance. Just list down every expense you have, and create and envelope for it.

Because of the envelope system, I am never left feeling broke and overwhelmed when something major like car registration is due. These major type of expenses are the ones that really hurt people who don’t have an effect way of budgeting.

When I got home I simply pulled out the envelopes and started filling them. I put money away for everything we spend…groceries, petrol, registration, health insurance, childcare fees….etc. Ten minutes later, I put the envelopes away.

It’s that simple. Good luck!




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