Dave Ramsey describes using an system of envelopes to create a budget. This is done by writing a category on each envelope and placing cash in each envelope. I personally don't like to carry cash or have it sitting around at home so I have developed a method to keep track of my spending using virtual envelopes. I would like to share this method with you below.
List out all of the categories for your budget on paper.
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For each item in your budget create a cash account in Quicken. Title each of those accounts with "Envelope - 'category'".
'category' is the name of your budget category.
Whenever you are paid, create a deposit entry in your main account for your payment amount.
Ex: I get paid my salary through automatic deposits, so if I were to get paid $2000 then I would create a deposit entry for my checking account in quicken for $2000.
In Quicken transfer whatever is planned from your written budget for each category from your checking category.
Whenever you spend money from your "Envelopes", keep track of it in your Quicken "Envelope - 'category'" accounts.
Things You'll Need
Pen and Paper - To create your initial budget.
All of your monthly bills.
It has been proven that you are less likely to spend cash then you would be to spend with a card, therefore, for you impulsive buyers, you would best be served by using Dave Ramsey's Cash Envelope System.