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Ask Dave

Where Do Leftovers Go?

When you've got money left over in your envelope system at the end of the month, what is the best thing to do with it?

QUESTION: Listener has money left in the food envelope at the end of the month. Should it carry over to the next month or be used up now?

ANSWER: Do whatever you want with it. That’s called you managing your money. If you want to eat, go out to eat. If you continually have money left over in that envelope, you’re budgeting too much for food. If you have money left over each month in your clothing envelope, you can let it build up and that can be your clothing savings account for when you buy food. The idea is that you’re controlling your money here.