I was chatting with some of my friends and they let me know how hard it is to use cash. They would just assume charge everything and pay it off at the end of the month! Boy, does that sound familiar. That was me 11 years ago. I was fine because I pay off my credit cards monthly and don't pay interest.
That makes me awesome right?
Not matter how you handle your money, you are awesome! What I have learned is, if you are like me and pay off your cards monthly, you are always a month behind. Meaning, if you charge and charge planning on paying it off at the end of the month and something bad happens, loss of job, car breaks down, someone gets sick, you are going to be behind.
I'm not saying that paying cash for everything is easy! Not at all. It is work just like anything else. What I am saying is that once you start using cash and know where your money is, know how much you have left for the end of the month. You are more in control of your future.
Your envelope system doesn't have to be fancy! Not even, this is a pic of mine! Yep, it is an old coupon organizer. This one has 7 sections and as you can see I have them labeled with what they are for and the dollar amount I want to put in there weekly!
These are the sections we use for our family and seem to be working because they haven't been changed in all these years:
Allowance. Yep, I call it what it is. My husband and I have money that we get weekly and we pull it from there. I don't need to know that he got his 178th 2L of Mountain Dew for the week and he certainly doesn't need to know if I got a new purse. You get the idea.
Groceries /Household: Kinda self explanatory. I let this fund roll over and when I see a great sale I am ready to stockpile.
Clothing: I know I am amazed that these kids grow too but we have to be prepared for when they need new clothes (us too).
Birthdays: Both of my children have late fall/winter birthdays and I need this section so that I am not stealing from Christmas fund to have a party. #Truth
Christmas: When I put a little in there every payday then when I see a great deal I can grab it throughout the year! Grab my Debt Free Christmas tips and tricks here. It's free and my gift to you.
Entertainment: This is an important fund so that you are prepared and can plan some fun times with family and friends.
The KIDS This is where I put money every payday and let it build up. We use it for those yearbooks, school photos, books, school uniforms, school supplies etc. It might sound silly, I know that every year they get pictures taken for school and they are crazy expensive. This way I don't have to worry about and figure out which fund I am taking that from.
Of course you can find tons of envelope systems all over the place. If you are in need of one you can go to the dollar section and grab a coupon organizer or even a fancy Envelope System, which ever one you choose I know that it will bless you and your family!
Are you planning on going Cash Only? What categories will you have?
Don't forget to grab my guide for 3 EASY Ways to Save you Money!
Love what you see here? Subscribe for updates on ways to saving money!