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Wednesday, April 22, 2009

The Envelope System: Still Going Strong

It's been 4 solid months since we put the Envelope System into place, and we're officially cash only converts. With jobs crumbling all around us, we're thrilled to have reeled in our spending and identified the areas where we can spend less to pimp out our savings and retirement accounts. So, with our incomes perfectly allocated to spending and savings, it's the first time in a long time when extra money - gifts, bonuses, and that pretty little tax refund - are fair game for guilt-free play.

We agreed in January that with the front steps in dire need of replacement, our tax refund would go to the steps. We thought about using it for something that we didn't NEED- since we'd budgeted house repairs into our savings - but since neither Mr. B or I enjoy taking money out of savings, this seemed like a perfect solution. And, with businesses desperate for work, we were able to negotiate a killer deal on the front steps and get the design we were looking for.

And with about half of our tax refund left over after that project (our status change from single to married sent us more money than we were expecting!), we're looking at replacing two dead trees and applying the rest to our vacation fund. Although I did suggest a new sofa...

Stay tuned for pictures of the step and tree projects. What are your plans for your tax refund?
Posted by Emily at 6:00 AM
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13 comments:

  1. T i f f a n yApril 22, 2009 at 7:03 AM

    We ended up putting some money into savings, paying down some debt and paying to have new gutters put on our house. Not very exciting but being able to pay off debt felt so good!

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  2. leah @maritalblessApril 22, 2009 at 7:22 AM

    Nice work you guys! It feels great to choose where your money goes,instead of having it allocated before you even get it based on necessity!

    We have no plans for our refund, because we weren't expecting one!

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  3. Mrs. DirnbergerApril 22, 2009 at 7:27 AM

    I am still not as good to use the enevelop system, but I am doing a little better :(?

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  4. Laurel @ Ducks in a RowApril 22, 2009 at 7:29 AM

    We love the envelope system also. It was so good for us as we started off. We usually pretend that we didn't get any money back and just put it right in savings. Fun, huh?

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  5. MeredithApril 22, 2009 at 8:49 AM

    Our refund has LONG since been used up! We put about half into savings, and used most of the rest to put in our new floors, and to buy the matching loveseat to our sofa. We DID end up each getting some "fun money" to buy new work clothes/boots/DVDs as well.

    I really think I might give the envelope system a try on this next paycheck. Do you do it for EVERYTHING, or just for non-set amounts like groceries? For example, our internet fee is exactly the same every month--I'm not sure putting it in an envelope would really accomplish much!

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  6. Freckles ChickApril 22, 2009 at 9:02 AM

    Ooh, can't wait to see the new steps, Em! And kudos on sticking to the envelope system!

    We weren't expecting a refun so imagine our surprise when our accountant told us we were getting some back! We took it and paid a huge chunk on our student loans. Whew!!

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  7. christelApril 22, 2009 at 9:30 AM

    Good job on saving. As much as I try, I can never do it. If I have the money, I want to spend it.

    About the Wii Fit, it may not replace your daily running but it is something to do with the kiddies. They do have a running exercise, of course you do it in place but it gives you a little work out. You should try it out.

    Oh, and the other exercies/games are fun too. The kids will love it. My daughter is six and she loves it.

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  8. CandiceApril 22, 2009 at 10:07 AM

    how exciting to have fun money, I cant wait to see what you do with it.

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  9. AudreyApril 22, 2009 at 1:31 PM

    This comment has been removed by the author.

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  10. AudreyApril 22, 2009 at 1:32 PM

    We decided to use our tax refund, along with some savings, to take a trip to Aruba (coming up in t-minus 3 days!). Not as practical as re-doing the front steps, so I applaud you for that one. :)

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  11. MelissaApril 22, 2009 at 2:23 PM

    A portion of it went to put new tires on both our vehicles. Blah! Just what I wanted to do with it. haha! We are taking a vacation in a few weeks so another portion is going to that and the rest is going to savings.

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  12. Kim @ NewlyWoodwardsApril 22, 2009 at 4:29 PM

    le sigh.... we received no tax refund.

    That's right.... none. Actually, we ended up having to pay, a lot.

    I cried a little. Turns out that Ryan's employer wasn't taking out enough and we made a lot more than our singleton days.

    There's always next year.

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  13. LeighApril 22, 2009 at 9:53 PM

    Exciting! Can't wait to see the grand reveal of the steps!
    We are saving ours for a down payment.

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