Envelopes For Everything?

Jamie and her husband are on Baby Step 1, and they’re wondering when they should start saving for purchases such as car tags and eyeglasses.

QUESTION: Jamie and her husband are on Baby Step 1, and they’re wondering when they should start saving for purchases such as car tags and eyeglasses. It should be monthly, as Dave explains.

ANSWER: Anything that isn’t absolutely necessary, you don’t need an envelope for. Anything that you know is coming becomes a part of your monthly budget. You don’t have to break everything down into monthly increments unless it’s something too big to save for in a short period of time.