Keeping checking and savings accounts straight. Here is an over simplified scenario.
There is $1000 in checking. It is budgeted as $200 for Gasoline, $300 for Groceries and $500 for rent.
In Savings there is $1000 budgeted for Emergency fund (EF).
I blow a tire on my car, and it ends up costing $250 which I put on my credit card, and pull from the EF envelope. A few days later I pay a medical bill again on my credit card, and pull the $200 from my EF envelope. I buy some groceries for $50 also on my credit card using money from my Grocery Envelope. I then pay $20 for gasoline from my checking account out of the Gasoline Envelope. Now my credit card bill comes due, and I have to pay $500 on it.
Do I have to go back through all my expenses and figure out how much to transfer from savings in order to pay that bill? Or is there an easier/better way?
Thanks for help with this!