Hi Dennis – Great question! I’d recommend trying to budget for the average. So some months you’ll have a little less in the Envelope, and others will have a surplus. But over the course of the year you’ll have budgeted for approximately the right amount. Hope that makes sense!

What’s the best way to budget for those expenses that have increases and decreases? An example of one is my electric bill which is low in the winter then trends up to peak in the summer then trends down again in the fall toward winter again. Use an average? Thanks