Reader,

A bit of context: March is a big birthday month around here. My son, father-in-law, nephew, best friend, and I all have birthdays. That means March = more gifts, more parties, more food, and more spending.

This past March, I overspent in both my Gifts and Groceries envelopes, soI had to shuffle money out of other categories to cover it.

When something like this happens - an annual expense catches me off guard - I create a new envelope for next year. That way, I can start setting aside a little money each month now, so next March it’s fully funded and stress-free. I don't have to borrow from Peter to pay Paul or take on credit card debt I can't cover.

Here’s what that looks like in my YNAB budget today:
​

What you're looking at:

• Joy - my category group name (where I keep envelopes for all the fun stuff that aren't essential but make us happy)
• Birthday Month (March) - the envelope!
• On Track — I have a target set for this envelope, which is like a little post it reminding me how much I want to stuff in there every month. I want $500 in that category by next March, which breaks down to $42.21 each month.
• $42.21 - what I added to the envelope this month.
• $0 - Spending this month from this envelope.
• $162.32 - what's available in the envelope, right now. Money I actually have, just sitting there, ready to be used
  ​

And the best part? If something urgent comes up, I can move this money to a different envelope. Nothing’s fixed, it's all flexible.

But the longer I use this system, the more I trust that I’ll have what I need, when I need it in all kinds of categories. Every time a big expense surprises me I just create a new envelope, set a target, and start filling it.

I've got envelopes for Christmas, summer camps, our driveway reseal, even one called "Appliance" (which recently saved the day when our fridge died). It all adds up to fewer financial surprises and more peace of mind.

This is the system I use and teach, and I want you to have one too, so you can stop carrying around money stress and uncertainty and start saving for your future plans.

Hit reply if you have any questions!

​

-Allegra

​

P.S. I just redesigned my offer to be more financially flexible. It starts with a flat-fee setup session to build your YNAB system, and then, if you want continued support, you can choose a tier that fits your actual budget.

More details here.

​
​