1. Budgeting period
I have set my budgeting period to start on the 1st of the month. But my salary goes in on the 25th, or the last working day before that. I can’t figure out if that matters or if it complicates things. What are the pros/cons doing it one way or the other?
2. Envelope fills - red envelopes
Today is the start of my new budgeting period and I want to fill my envelopes. December being just past I have a number of envelopes in the red (am I alone?). What is the best way to quick fill - Add or Set budgeted amounts? Add seems more ‘honest’ - red envelopes don’t fill completely and you’re left with the consequences of last month’s overspend. But I will need the envelopes to be full again for this coming month. What are your thoughts?
Happy New Year to everyone!
IMO, GB is simplest and easiest to use when you can do a single fill of all envelopes for the month on the first day of the month and just let the envelopes burn down from there. As I am paid biweekly and my wife semimonthly, we use calendar months as budgeting periods because it’s the most logical starting point. In order to accomplish the single day-one fill I use some accounting magic to record one massive income and fill at the start, then transfer from that income to my checking account as we actually get paid.
If I were in your shoes I would set my budget start to the 25th. Record your income whenever you receive it and on the 25th just fill everything. Easy peasy.
Some envelopes must be “Set” and others should be "Add’. It’s up to you to decide which is which. My “Bills” envelope is always a Set even though I may have overspent last month on water because I had to refill the pool. “Restaurants” might be Add and we just have to eat out less this month because we splurged last month.