Rule of 5 envelopes for budget planning. How to plan a family budget - the envelope method. How does the Envelope Method work?

Good afternoon, dear readers. It happens not infrequently when you want to buy something, for example, a new refrigerator, but the family budget does not allow you to do it right now. Best of all, it is saving the family budget. Of course, you can close your eyes to everything and purchase, for example, on credit or in installments.

But then it is not uncommon to get a big hole in the budget and this leads to serious problems. What is the way out? First, you need to try to plan everything. This is generally a separate topic for conversation. By the way, if you are interested, leave your feedback and a detailed article about proper planning their time, labor and energy.

Now to our topic. Secondly, keep yourself within limits and think about what you are doing now, whether this or that is necessary.

Thirdly ... In general, we present you 13 simple ways really save the family budget in order to buy equipment or other things without loans and loans.

The advice to get rid of the TV may seem unnecessarily categorical to many, but turning it off less often will definitely not hurt anyone. So your life will be in order less advertising and obviously less expenses. In addition, this way you will have more free time that you can use to create own business or learning a foreign language, and it also saves on electricity.

Just see for yourself. We are used to the fact that the TV is always on, we do not watch it, but it works. Even if the TV is in economy mode, it still consumes it. Plus, the TV turned off will not be distracting when you are doing your own thing.

And this will allow you to concentrate and get the desired result.

We do holiday shopping after the holidays.

After the holiday hype comes a great opportunity buy themed gifts at really low prices. For example, Christmas toys and decorations can be purchased after the holiday and left until next year.

This method also applies to birthday gifts: by noticing a profitable promotion for your child’s favorite designer (even if the holiday is not coming soon), you can save a significant amount for the family budget.

Use the 30 day rule.

With this rule, you can get rid of impulsive buying. When you want to buy something(this is especially true for large purchases that were not included in your plans), stop and give yourself time to think, for example, 30 days. In most cases, after a month, the desire fades away and the previously desired thing becomes completely unnecessary.

And make it the rule. Since initially it still seems that this thing is very necessary, without it there is just no way. Do not give in to emotions and desire. Write on a piece of paper all the pros and cons of this purchase. But do not decide right away, put this leaflet aside for a while.

For example, take it out the next day and think again if you need this purchase now. Etc. Of course, there are exceptions, but to a greater extent this rule is saving the family budget, do not buy what you did not plan, what you do not need.

Make a menu for the week.

Try to think over the menu for the coming week in advance: this will help you decide on the purchase of the necessary products for the week . And besides, it will facilitate cooking, make nutrition balanced and make it possible to avoid rash and unnecessary expenses.

For the upcoming holidays, you can even think ahead. Again, no one is telling you to strictly follow the plan. You can deviate a little and add something unforeseen to the menu, for example, at the request of the child.

In any case, the savings in the family budget will be noticeable. Plus, you don’t need to hammer your head every day: what will he cook? To cook something like this today? and tomorrow? Then the anger starts and the like.

So making a menu is another way to relieve stress, and as a result - a good mood and a happy family)))

Don't speed.

Fans of fast driving spend a huge amount of fuel. In addition, speeding can lead to hefty fines. Perhaps you should reconsider your attitude to the readings on the speedometer - this is useful not only for the budget, but also for your own safety.

Usually young people like to "drive". But according to statistics, owners of low-powered cars like to heat the gas pedal harder. The owner of sports, powerful cars does not do this in most cases.

Again, there is still a question of safety, because the driver needs to think about passengers and other road users. If you want to drive - go to a closed area and do what you want. Let's go further.

Review your plans once a year.

Make it a rule to revise contracts with cellular companies, Internet and TV signal providers once a year. For beginners, their services are constantly cheaper, and if you are a long-time client of your company, you may be paying at the most unfavorable rates that have been in place for many years.

Use the 10 second rule.

If you're heading to the store without a grocery list, the 10 second rule will help you avoid the temptation to buy extra stuff and groceries. Before adding a certain item to the cart, stop and think for 10 seconds: do you really need it? If in doubt, put it back without any regrets.

This advice- not a bad savings for the family budget. Unlike my wife, I cannot save money, but sometimes I have to go to the store. Sometimes I get the impression that I get stuck choosing this or that product.

Oh well, but if I don't need it, I'll save money and buy something for the child. Yes, I tried to somehow go with the list and more than once. But in addition to the list, I always took more from above. What for? The answer to this question was always simple - I want or I need to. In the end, most often, this “I want” turned out to be just an excuse.

Do not shop in the first three days after payday.

Don't spend your salary in the first 3 days. This is the time when most people make impulsive purchases. Try to get everything you need in advance so that the next trip to the store for bread does not end with an unplanned waste.

Rule of five envelopes.

If you need to be able to strictly fit into a certain budget or save a lot, divide the entire monthly income received into 5 equal parts-envelopes. You can only spend the amount from one envelope per week. 5th envelope - for the rest of the month, in case of unforeseen expenses, and use the rest in it for savings.

If you have large payments, then you should set aside the required amount and only after that divide the budget into 5 envelopes. It even helps not only to save money, but also to avoid stress.

Try carpooling.

Perhaps a colleague or acquaintance who works near you lives near you. In that case, you could agree and ride together, changing car and driver in turn. So the two of you can reduce car wear and fuel costs by 2 times.

And perhaps several colleagues work and live nearby, then the savings are even higher.

Clean your car's air filter and inflate your tires.

For every 0.1 atmosphere below the recommended pressure level, fuel consumption increases by 1%. By inflating your tires, you can save a significant amount of fuel. To do this, check the recommended tire pressure for your car in the car manual. At any gas station where there is a compressor, you can check the pressure and pump up the tires to the desired level.

Clean air filter also reduces fuel consumption by 7%. Cleaning the filter can be done in just a couple of minutes - just follow the instructions in the manual for your car.

Also, about once every half a year it is desirable to clean the fuel injectors. Now you can easily buy in the auto shop special agent and pour into the tank. On my viburnum helps very well. And the car is good and saving the family budget.

Let the woman do the shopping.

According to research, men spend more money for impulsive purchases and much less likely to regret it. Therefore, if you are determined to quickly pay off the loan or go to the sea with the whole family in the summer, perhaps a woman should not send her husband to the store alone.

At the same time, it is also better for a woman to distribute the family budget. I speak from my own example. There was a time when my salary was very small, I still do not understand how we could survive. At the same time, there was always something hearty to eat on the table and there was no impression that there was no money.

And when it was necessary to buy something, I thought that there was no money, and my wife also managed to save money: on, she says, buy. Must, means must. If you want to strengthen relationships - entrust the budget to your wife))))

Exchange favors with friends.

Surely each of us knows how to do what friends or acquaintances need. Why not make the most of it for everyone? For example, if you are well versed in computers, you can help your friend with the repair or installation of the program, and she, as a lawyer, in exchange for this, can help you draw up documents.

Previously, people did this more often, saving the family budget and even more communication, more friends. So there are many more pluses.

What are some ways to save money on your budget? Share in the comments with everyone, help each other and then the world will become a little better))))

And that's all we have, although you will probably say that it takes a long time to save and so on. For example, our family needed a new refrigerator. And according to such a simple plan, they saved about half a year. Duck, you need it - go and buy it, without credits and loans. Previously, we could not afford this.

Of course, various factors can influence here, such as the size of the salary and the conscience of their household members. Yes, and there are many more ways and schemes are more complicated. And we have selected some of the simplest and most effective. And if you try hard and really want - everything will work out!

Now everything is for sure, join us on Odnoklassniki and support us on our channel in Yandex.Zen. All for now.

Based on materials from the site: www.adme.ru

Saving the family budget - 13 simple tips. updated: April 22, 2018 by: Subbotin Pavel

In this article, I want to talk about one of the family budgeting methods. There are several different approaches: the envelope method, the usual budget by categories (drawing up "top" and "bottom"), "zero budget" (zero-budget). Today we will focus on the first approach, which can be generically called "envelope method"(envelope budgeting).

Like many approaches and methods in personal finance, the envelope method came to us from America, where there are special programs and services that allow it to be applied (about them at the end of the article). Over time, various modifications of this method have arisen, which I would like to talk about:

1. classic envelope method
2. JARS budgeting method
3. method 60-10-10-10-10 (Microsoft budgeting, 60%)
4. four-envelope method (Max Krainov method)

The advantage of the envelope method is that it is suitable for those who only starts working on budgeting, the method is simple and transparent. It also has disadvantages: it is difficult to assess the implementation of the budget, it is not very convenient to work with long-term goals, it is problematic to use it when money does not come in cash, but on cards, if there are many sources of income or they are irregular. However, you will judge this for yourself, it is better to go straight to the description.

Classic envelope method

This method was used by our mothers and grandmothers, it is time-tested, simple and effective. The idea is very simple - for each important category of expenses a special envelope, the name and amount are signed on it. Categories can be, for example, the following: food, clothes, drugs, car, public Utilities, entertainment, savings, etc., they can be both enlarged and made smaller. All income for the month is distributed according to these envelopes, and whenever you need to spend money, you need to take it from the right envelope. If the money in the "Entertainment" envelope has run out, then you will have to give up paid entertainment this month. If the money in the "Food" envelope runs out, you will have to take it from another less important envelope, and reconsider the amount of this envelope for the next month. The money left in the envelopes at the end of the month can be put aside for savings or spent on entertainment, depending on their amount and your financial goals.

JARS budgeting method

This method is a development of the envelope method. The author of the method proposes to take 6 "jugs" (for example, glass jars, but envelopes are also suitable) and sign each of them in accordance with the purposes for which the money from this jug will be spent:

1. Necessities or current expenses(Necessity Account, NEC) - 55%. This jar contains money for current expenses: food, utility bills, clothes, rent, transport, medicine, etc.
2. financial freedom account(Financial Freedom Account, FFA) - 10%. This jug is the key to your financial well-being. The money from this jar is not spent under any circumstances, but is used for investment and passive income.
3. Education account(Education Account, EDU) - 10%. From this jug, money is spent on education, both directly (paying for tuition, tutors), and for the purchase of books, films, attending trainings, etc. You are your most valuable investment and asset, do not forget about it.
4. Reserve fund and account for future purchases(Long Term Saving for Spending Account, LTSS) - 10%. This account accumulates money that can be used both as an "airbag" (reserve fund) and as savings for large purchases (vacation, car, TV, dental treatment, etc.). The presence of money on this account will allow you to pass financial tests with honor, avoid bondage debts, and feel confident.
5. entertainment account(Play Account, PLAY) - 10%. You can’t devote all the time to saving and working, you need to be able to relax and have fun. With the money from this jar, you can go to a Japanese restaurant, bowling alley or a go-kart club. Give yourself and loved ones pleasure without feeling guilty about spending money unnecessarily.
6. Gifts and charity account(Give Account, GIVE) - 5%. Money from this jar can be used for charity purposes or for gifts to friends, relatives, neighbors. Give love, attention and gifts, it warms the soul so much. The easier you part with money (do not squander, no, but give, give), the faster they will return to you.

Further, the scheme follows the envelope method: each month, the entire total income is distributed among these jugs: first to current expenses, then to the financial freedom account, and then to the remaining accounts. Of course, you may end up with other percentages between pitchers, but these are close enough to your ideal spending and investment structure to be worth striving for. Not all pitchers have to be made physical, some of the money (especially for investments and savings) can be kept in a bank or can be invested in financial instruments.

Method 60-10-10-10-10 (Microsoft budgeting)

This method was proposed by MSN Money consultant Richard Jenkins, and is actively used in Microsoft program Money, starting from version 2007. I must say, the idea is close to the previous method of "jugs", but judge for yourself what is closer to you.

The method is usually called “60% Solution”, because it is proposed to divide the entire total income into 5 parts, of which about 60% goes to current expenses. I will list these parts:

1. Operating expenses - 60%. As in the previous method, this includes food, utilities, transport, clothes, newspapers, cosmetics, etc.
2. Retirement savings - 10%. In America, there are special pension savings programs, a whole business is built on this. Here, in Russia, it is still difficult to trust the state with our pension savings, but this money can be used, for example, for endowment life insurance.
3. Long-term purchases and payments - 10%. Savings account for major purchases (car, repairs) or savings for a mortgage. It can also be used to pay current debts.
4. Irregular expenses - 10%. Account for irregular expenses, money can be used, for example, to repair a car breakdown, treat a sick tooth, birthday gifts for parents, a new washing machine, etc.
5. Entertainment - 10%.

Jenkins believes that there is no need to keep detailed records of expenses, the main thing is to meet the magic figure of 60%. If the debts are very large and the interest on them is quite high (in the conditions of our Russian reality, these are any loans, even mortgages), it is better to use not only the 10% intended for this, but also 10% of pension savings to pay off debts until the debt is fully paid off or the financial situations.

You can read more in Jenkins' own article: A Simpler Way To Save. The 60 Solution.

Four envelope method (Max Krainov method)

The author of the method, consultant, investor and businessman Max Krainov, proposed this method in early 2008 as a scheme that he uses to manage his family's finances. And just six months after the first publication of the 4-envelope method, he created a free online service with the same name, which is very popular. Unlike the authors of the previous two methods, Max took a different path in the development of the classical envelope method. The procedure for preparing and implementing the budget is as follows:

1. Calculate the total expected income
2. We deduct money from it for investment purposes and for large purchases (10-20%)
3. From the balance we subtract money for regular expenses (rent, payment kindergarten, Internet, phone, etc.)
4. We divide the remaining amount into 4 parts (in fact, by 4.3, according to the average number of weeks in a month) and we get 4 envelopes, for each week one envelope.
5. Now we spend money from the weekly envelope on anything (food, entertainment, transportation) and try to stay within the budget.

This is the basic idea behind the four-envelope method. Later, Max supplemented and developed it, describing what to do if income is irregular or large expenses often appear that take up a significant part of the weekly envelope, you can read about all this on the website: www.4konverta.com.

Automation of the "budget in envelopes"

In Russia, the envelope method is implemented only in the “4 envelopes” service (see above), there are no other specialized services and special programs. However, there are not very many of them abroad:

1. www.mvelopes.com
2. www.neobudget.com - paid online service (first month free), in English.
3. www.snowmintcs.com - PC software, $29.95, in English. Perhaps the only program that implements the envelope method.

"MoneyTracker" and the envelope method

Despite the fact that in the MoneyTracker program the budget is not implemented using the envelope method, the latter can be modeled quite simply (albeit with some limitations). How? With the help of budget groups that you can create in a completely arbitrary way in the budget, and with the help of percentage restrictions that you can assign to these groups (envelopes). For example, you might end up with the following budget.

Hello my dear readers and guests of the blog! Many people face the problem of saving money. Everything financial textbooks they say one thing, that in order to be able to use the money earned rationally, it is necessary to spend less than receive. In other words, the secret to financial well-being lies in the fact that expenses do not exceed income. But many families simply do not know how to put this formula into practice, and today I want to tell you about a way to save the family budget. It's called the 4-envelope rule.

Who is the 4 envelope method suitable for?

It has a number of advantages and disadvantages. For example, the main advantage is the undoubted efficiency. In addition, in order to plan expenses and, in general, the family budget, it is enough to spend 10-20 minutes of your time per month! Agree it is very convenient. You will no longer need to count each expense, enter it in a table, make a debit, credit, and so on. Everything is very clear and simple.

With this approach to family financial reporting, in most cases it is impossible to get into debt. And if it does, the amount will be quite small.

The four-envelope method is suitable for absolutely everyone, and especially for those who:

• wants to learn how to save money, that is, save it;

Many people cannot figure out the amount that can be set aside, or there is simply no deterrent to savings.

• who cannot evenly distribute expenses during the month;

In most cases, it turns out that the family spends most of the income in the first half of the month, and at the end of the period they are forced to save significantly, or even live in poverty.

• prone to borrowing.

Often loans are related to the previous point. There is no money - they can be. Thanks to the four-envelope rule, you no longer have to worry about running out of money. In addition, this is a great way, if not the entire amount at once, then in parts.

Rule of 4 envelopes: what is the point

As I said, everything is very simple.

Step 1

It turns out a certain amount, which you usually dispose of within 30-31 days.

Step 2

All financial geniuses advise saving about 10 percent of the total income. This will be a safety cushion, savings. You can invest them, and so on.

If in this moment you have a very small income, you can start small, for example, save not 10 percent, but 5 or even 3. The main thing is to do this operation monthly. Further, in case of salary growth, you can increase the amount.

Step 3

Then subtract all fixed and mandatory payments. For example, I have this, the Internet, a kindergarten, a loan, communication services, subscriptions, and so on. If at the moment you have debts, for example, to relatives and friends, then it is also worth making the “debts” item as a payment. If the loan amount is large, it is better to repay it in installments than not at all.

Step 4

The final step of the 4 Envelope Rule: divide the remaining amount into 4 parts, each part must be spent only within one week. In fact, we divide 1 month by 4, it turns out time intervals of 7-8 days.

It is advisable to put aside the split amounts in an envelope and forget about them before the time comes to spend them.

Learn one main rule: you can not use the money from next week's envelope, even if the funds ended earlier than expected.

At first, it may be difficult to rationally and properly spend money. You may want to take a couple of thousand from the next envelope for a while, so be patient. Soon you will learn to live within your means.

Nuance

Everything, it would seem, is good and convenient, the money is distributed, it remains to spend it correctly. Judging by the experience of people who have experienced in practice this rule, there is a catch.

For example, an event happened that requires a lot of expenses - a birthday, a wedding, a funeral and an illness (God forbid).

The money that you set aside for the week is clearly not enough, then it is suggested that in addition to the fixed expenses that you subtract from income in step 3, take into account unforeseen expenses. In the future, finances can be summed up or credited to a deposit if you have not spent them.

An example in numbers

Now I will try to apply the 4-envelope method visually using an example.

In January, the family income is 50 thousand.

At the first step, I set aside 10 percent, it turns out 50,000-5,000 = 45,000 rubles.

• rent - 6000,
• kindergarten - 4000,
• Internet - 500,
• cellular – 300,
• credit - 10000,
• contingencies - 2500.

Total: 45000 - 20800 = 24200

At the last stage, I divide 24200 by 4, the amount is about 6000 rubles for each week of the month.

Okay, we've covered the example. There remains the last and no less important question. A week has passed, but it turned out that there was a remainder in the envelope, which they did not have time to spend. Running to the store and making purchases on them is not worth it. It is best to think about how they can be used to your advantage. Well, firstly, a win-win option, put them in a bank account, that is, add money to your savings base. Secondly, you can make yourself feel good and buy a gift or go to a cafe, relax. In other words, reward yourself for following the rules of the method. This, by the way, is a great motivation to save in the future. And the third option is to spend some on yourself, and put some on the account.

It all depends on the balance, of course. One thing is 500 rubles, and the other is 2000 rubles.

The 4 Envelope Method provides a huge benefit to each of us and the family as a whole. Unfortunately, not everyone has a craving for hoarding. Many spend everything that is given to them without thinking about the future. You should always save and invest. In the future, in case of a critical situation or desire, you will have the necessary amount that you will not take on credit. Interest, as you know, is not small now.

Discipline in relation to money never hurts anyone. No wonder they say that having finances is one thing, you need to use them correctly. The simplicity and ease of the rule is undeniable and within the power of each of you.

That's all for today. If the article has become interesting and useful for you, then be sure to share it with your friends. Tell everyone how to properly manage family budgets and put into practice the rule of four envelopes. Until we meet again and financial well-being!

Many people say that money is like water - it quickly flows away to nowhere. If you can’t remember what you spent an impressive amount on, it’s not clear where your salary goes and why it ends in just two weeks, you can’t save up for the desired thing or vacation, it’s time to carefully calculate your income and expenses. Planning a family budget is the first step towards fulfilling your material desires.

Household bookkeeping: the first stage - income

Each family builds its material well-being according to its own scenario: someone seeks to earn more, someone insists that all family members follow the principles of reasonable spending. The main thing is not to go to extremes, but to find your right path. This issue becomes especially relevant in the family with the advent of children, when family expenses increase significantly. There are several methods on how to plan a family budget, what principles to follow.

The first step in any of these methods is to determine the items of income and expenses of the family. Income should include:

• wages;
• social payments;
• income from bank deposits, from renting an apartment;
• part-time job;
• cash gifts.

It is clear that the first 3 positions are constant, the amounts of these incomes are known, and it is from them that the basis of the income part of the family budget will be formed. Part-time work and cash gifts may or may not be, so you should not rely on them, but use them as bonuses for pleasant spending.

The second stage - expenses

The second stage is the calculation of expenses in various areas. Few will be able to immediately say how much and what they are, so it is important to keep track of your expenses for at least a month or two, even in small things. Then it will become clear how much the family spends and on what. How to keep an account? Personal finance experts recommend writing down all daily expenses: food, travel, entertainment.

Costs, like income, can be divided into several broad categories:

• obligatory payments;
• food and travel expenses;
• spending on updating the wardrobe;
• spending on entertainment, recreation;
• unforeseen expenses for treatment, repairs, etc.

Mandatory payments include:

• utilities;
• payment for mobile communications, the Internet;
• insurance;
• payment for circles, sections, additional classes for children.

Food expenses should also be divided into categories:

• dairy products;
• cereals;
• meat, fish, poultry;
• vegetables;
• fruit;
• sweets, juices, pastries, etc.

In the first months of maintaining a family budget, experts recommend making a table and advise you to write down all the costs of food, down to the smallest detail. Sometimes, from such trifles as buying 200 grams of sweets, cookies, a cup of coffee, significant amounts are accumulated in a week and a month. All family members need to learn how to remember and write down their expenses so that later they can correctly plan the family budget.

Stage three: comparison of income and expenses

Today I want to offer you one of the easiest ways to plan personal budget– . This method does not require a lot of time for personal finance accounting: when using it, it is enough to allocate only a few minutes a month to allocate and optimize expenses. So what is method 4 envelopes?

Traditionally, I offer you a simple circuit, clearly illustrating everything that I will now talk about.

Step 1. Immediately after the income part enters the personal budget, a certain share of income is redistributed to (I will not talk about capital here, because I assume that such a simple method is used by people or families whose capital does not imply). At least 10% of cash receipts must be set aside in reserves or savings, and an increase in this share is always a positive factor.

Step 2 Then you need to allocate funds to pay monthly fixed expenses (such as loan payments, utility bills, mobile connection, Internet, school, kindergarten, etc.).

Step 3 The entire amount remaining after the first two steps is divided into 4 equal parts and laid out in 4 envelopes (4 heaps, 4 boxes, etc.). That is why this method is called the “Rule of 4 Envelopes”. Each part (envelope) represents the maximum allowable running costs for 1 week.

It is strictly forbidden to spend more per week than allotted in the appropriate envelope. In the event of any force majeure requiring immediate funding, such expenses are paid from reserves, because this is what they are intended for.

However, if less money is spent per week than was allocated in the envelope, then the rest can be:

1. Add to reserves or savings;

2. Add to the next envelope (for the next week);

3. Spend on your own (financially pamper yourself).

Naturally, these opportunities are arranged in descending order of priority, but if you really need to spend money for your own pleasure, then, subject to other conditions, this is permissible in this case.

As you probably already guessed, the number 4, which the 4-envelope method offers us, is very conditional. Firstly, there are not exactly 4 weeks in a month, but rather 4.5. Therefore, for a more accurate application of the 4-envelope rule, you should divide the amount of current expenses not into 4, but into 4.5 parts. Secondly, if it would be more convenient for you to “hold on” for a shorter period, divide the amount into 6 parts for 5 days, and if it is longer, then into 3 parts for 10 days. The general essence of the method should remain unchanged.

Thus, for all its simplicity, the 4 envelope method guarantees compliance with the most basic rules for planning a personal budget:

1. Formation of reserves and savings.

2. Mandatory payment of fixed costs, which prevents the formation of debts.

3. The ability to reward yourself with unplanned expenses, provided that you spend money economically for current needs.

1. People whose personal budget is small.

2. People who are “not friends” with mathematics and are afraid of more complex calculations.

3. People who are too lazy to devote time to accounting for income and expenses of their personal budget, but who, at the same time, want to start planning, for example, in order to or simply improve their financial condition.

In future publications, he will consider other, alternative ways of planning a personal budget. Stay with us!