Cash system(aka envelope system)
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Cash system(aka envelope system)
| Fri, 05-19-2006 - 3:27pm |
Are any of you using this system? Does it work for you? I tried to do it(and have tried in the past) but I must be the one american in the country who spends less on credit cards. I have blown through $180 this week and didn't even put gas in the car...I ended up spending it at garage sales!!! Which I NEVER NEVER shop garage sales but our neighborhood had one and I couldn't help but be neighborly;-) So I spent....this has happened to me in the past
Now, when I use my cc I never over spend my budget because I am so TERRIFIED of not paying it off at the end of the month so I am extra careful.
Do I go back to using the credit card?
THANKS!
Loca

We use a modified envelope system. The only money I keep with me is the grocery/toiletry money. I get the $$$ right before I do my shopping so I'm not tempted. And I stick to my grocery list.
I am the same as you though. If I have money in my purse, I spend it. Not necessarily on outrageous purchases . . . but I'll find something to spend it on. I eliminate that issue by just not carrying cash the majority of the time.
"Once we discover how to appreciate the timeless values in our daily experiences, we can enjoy the best things in life."
Harry Hepner
Loca, I use envelopes for vacation, dental expenses, doctor co-pays, Xmas/birthday, etc.
over 40 and tired
I was just wondering if I should try the envelope system, since I didn't do that last month and a lot of people swear by it. But then after reading this thread, I think I would be one of those who tends to spend it. If I had $2 in my pocket I would definitely be tempted to go get coffee from Dunkin Donuts or something. Now I'm thinking maybe I should use a cc that has a zero balance on it but is still open for groceries only so that I pay it off every month and can keep track of it at the same time.
Heather
Nope your not the only one....I spend less using my debit card. I can blow through cash and then have no idea where it goes.
I follow the DR plan, but do use my debit card with a spreadsheet with my budget.
Shannon
Hello,
The point of the envelope system is not only to use cash, but to record your purchases for tracking purposes. If the cash is "wrapped up" in an envelope with "groceries" written on the front and every time you purchase groceries with that money, you write on the side (or on a piece of paper) how much you spent, what date, and where, then it's just as "trackable" as using the debit or credit card.
The problem is that you and I spend cash without writing down where we spent it. If the envelope holds $50 and there aren't $50 worth of expenses written down on it, then it's obvious that the money went "somewhere" but wasn't written down.
Sincerely,
Lindsey Schocke
Geeks on Tap: Mission Accomplished
My sister has used it successfully for years. I tried this and I had the same result you did. Cash money just vanishes without a trace. I use a debit card so that I have a record of where everything goes, even the $4.59 at CVS!
Everybody has to find their own method that works for them! Sometimes we find it by trial and error.
Good luck!
Cupcake