Budgeting basics – The withdraw only what you need system

Budgeting Basics - Using the "Withdraw only what you need" system. If you want to learn a basic budgeting strategy click through to find out more.Managing family income for some people is easy and may come naturally.  For others, it can be a weekly struggle to make ends meet, or even co-ordinate the incoming money and sending it back out to pay bills. Perhaps all you need is some basic budgeting tips to get on the right track.

Perhaps your struggle is putting money aside for incoming bills and to avoid spending it in the meantime. Learn some basic budgeting tips now and gain back control of your personal finances.

For whatever reason your struggle is, there is a system you can adopt to suit your family to avoid dipping into the bills money.


Budgeting Basics: Managing money and the different systems

Everyone sets up their systems differently but I want to share with you one system that worked for us in the early days to ensure we weren’t dipping into our bills money!

My hubby is a bit of a spender.  I’m the more frugal type.  So to get our weekly budget under control, and to be able to pay our bills and debts without spending the bills money we used the “Withdraw only what you need” system.


The ”Withdraw only what you need” system

On pay day, I would go to the ATM and draw out enough cash, according to the set budget, for groceries, sanity and petrol money.

I would then put that cash into little tabs (or separate envelopes) in my purse. When we needed to pay for something, it came out of its designated tab.  And when it ran out, it ran out. We didn’t have access to the rest of the money via ATM or eftpos.  The rest of the money was transferred to a “Bills” account and we could not access that “Bills” with our Eftpos cards. We could only pay bills online with this “Bills” account.

If I overspent at the supermarket, I had two choices.  I either had to put some back or it came out of our sanity envelope.

If we needed extra petrol that week, that too would have to come out of our sanity spending.


Here’s a tip

The trick is to budget enough sanity money for those little hiccups in life, so you don’t have to dip into anything else!

Any remaining sanity money at the end of the week was either paid on debt, added to next weeks sanity or put away and saved for a rainy day.

We used this system for years and it worked well for us.  It got us to where we are today. Hubby didn’t touch the accounts at all because he knew that our family allowance was there in my purse and once it was gone, that was it until next week.  The bills got paid as they came in. Direct debits were set up and the money was always there waiting for them in the bills account.


Helping others

My Mum saw my purse one day and asked why I had money all separated in tabs like that?  I explained my system to her and she liked it so much she started doing it. It worked for her too.


Related reading:

What is your system?

How do you avoid dipping into your bills money?  What is your system?  Inspire others and share your system in the comments box below.


Budgeting basics - If you are new to budgeting try the "Withdraw only what you need" system. Great for those who aren't so good with their pay check!
Budgeting Basics - Withdraw only what you need system

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