Hubby and I have decided to go back to Cash and the Envelope system this year.. Many years ago when we stuck to our envelopes, we saved enough to pay all our debt. But that was many years ago.... The system failed after having a child and some other problems that I won't get in to. We have gone Debit Card crazy for way too long.
We figured out a good amount for groceries, family fun/eating out, and a little bonus for him and myself each week to eat out at work or save for something we want. Oh and a tad for House needs (garden stuff, paint, etc.)
Each week we will fill our envelopes, a little money will get added to our Savings account, and the rest will go to paying bills and paying off credit... Or the extra would be things like family gifts, charity, Vacation etc. As the pendulum shifts, more will go in to savings then paying off bills. (in theory)
My hope is that, Big Purchases and real vacations won't happen unless we have the cash saved to cover the expense. But in an emergency charging something won't be so bad, when the balance started at zero.
Grocery shopping, will require some thinking, because if I don't have the cash, then I have to put items back.. The whole Needs Vs. Wants Conundrum. I also can't just go on a whim, because I'll have to remember my envelope that contains the cash, grocery list, and coupons... (so I shouldn't forget those again, in theory)
For all realistic purposes we don't spend much compared to some, and our debt is fairly low. But with only one main income, private school and regular expenses, we seem to still be catching up from a couple years ago when Debt was our middle name.
I'll be happy to say GOODBYE to that burden, and be able to actually save again for later needs instead of just sending off every big sum of money to a bill.
The trick is remembering to take the cash, and one of us remembering to get it out of the bank, and blah blah blah...
The benefits are not just savings... I will no longer have to enter 500 receipts in to my checkbook. Balancing will be so much easier. And I'll be saving on the security concerns of credit fraud and identity theft. The more my card stays in its pouch, the less trouble it will cause.
So we are hitting week two of Cash only, and we both agree that we kind of like it. At first I thought I would be annoyed that everything was now monitored and accounted for. And I thought the inconvenience of needing cash every where I went would be a burden. But now, not so much.... I'm content with how things have gone and have no worries at all...
Here is our first FUNNY though...While at the store today, Hubby tried to sneak in a video game to the grocery stash. Knowing he'd already spent his money for the week, I was curious how he planned to pay for it. At the check out line, I kept the video game toward the back of the cart, and I asked him how much money he had for the game. He looked at me with this priceless expression (sooo busted)
He explained that we were getting groceries so it could come out of the grocery envelope..... Um, Really? So you would prefer having a game over your son getting lunch food.... HA HA!! Oh did he feel about two ounces big.... And then he said the "Truth" that he would be trading in 3 games this week, which will cover the cost of the game and he will put that back in the grocery envelope for next weekend....
OK - that is a deal! We Agreed! And guess what! We still had grocery money left for me to hit the health food store this week. I'm pretty sure we planned well on the expenses. So we shouldn't fail..
In Theory!
