Friday, March 8, 2013

EEBA

One of my goals that I have been working really hard at is sticking to a budget. I have had the hardest time until I came across this website/app EEBA. And when I find something I really like, I want to share so here is how it all works.
It is set up using an envelope method. You can have up to 10 envelopes free. (If you need more you can pay $3, $5 or $8 a month depending on how many you want). I have it so each envelope represents some form of bill, ex: groceries, cell phone, gas (for car), spending money, American Express etc. Then you set the budget for each envelope. And you set a time length for the budgets, ex: weekly, bi-weekly, monthly. The key is you don't spend more than you have in an envelope. Once my "spending" envelope is empty, I stop buying stupid little things.

Originally I thought that it had to be monthly. So I set each envelope to what I would spend in a month for each category. The problem was that I get paid bi-weekly, so I never had the full months budget to start the month and always felt behind and discouraged.  Then I realized you could change the time length so I switched it to bi-weekly. It makes more sense because that's when I am paid. I set each envelope up to what i should spend in that 2 weeks time. Some of my bills are monthly though. So in that case, I split it in half. Ex: My car insurance is $140 a month. So I set my envelope for $70. I don't touch the money for the two weeks time and at the end of 2 weeks I still have $70 in that envelope. When I get paid again, I add $70 more. I have twice as much as budgeted, but the full amount for my bill each month.
 There is the website EEBA and an app for your phone. You can sync up to two phones for free, more cost money like more envelopes. You can add money or add a transaction from either the site, or your phone. They all sync together.
You add money at the start of your month/week etc to each envelope (filling it to the amount you had budgeted works best). You can add money in the middle as well if you get paid extra for something. And you add a transaction to the appropriate envelope to subtract money.

The app shows each envelope as a bar. The green portion is the amount of money you have. There is a little black line through the bar that is a guideline to help pace you. If the bar represented the timeline of your budget, that line represents today, with the left side being time left in the month.
Some of my envelopes have more than I budgeted because it was left over from last time.



 When adding money, its your choice whether you want to add the budgeted amount to an envelope, add enough to bring it up to the budgeted amount or add any amount you choose. I add the budget amount and let everything roll over.

I seriously love this! And I recommend it to everyone!!! Right now I am using it only for my personal money and not our joint account. It has really opened my eyes at to how much I am really spending. I thought $100 would be plenty to last me two weeks for gas money, but after just one week, it was gone and my tank was only half full! That's how much i am driving! goodness!
 
I get a rush now seeing my savings account going up and having money left after getting everything I need.


1 comment:

  1. We make a budget every year and talk about it every few months, but last week a friend of mine mentioned her budget so I've been thinking about it ever since. Thanks for your post! I need the advice :)

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