Simple and DIY Digital Envelope Budgeting System

When each paycheck direct deposits into my accounts every other week, I spent a few minutes transferring the money between a few different accounts. I created a digital envelop budgeting system many years ago to help plan for monthly, semi-annually, and annually bills. When you have a mortgage, you want to make sure you have cash available to pay those bills when they come due.

How I setup my digital envelop budgeting system

First I listed out all of my bills for the year, including the ones due monthly such as the mortgage and utilities along with my car insurance (that’s twice a year) and my home owner’s insurance (once a year). I’m not a fan of other people paying my bills so when I was opened my mortgage I qualified to not have the bank escrow my property taxes and insurance.

Next I took each amount and divided either by 2 (for bills due monthly) or figured out the total for the year and divided by 26. This tells me how much I needed to set aside each each, into a separate account, to cover that bill when it comes due.