Cash Envelope System for Saving Money
One of the first steps to take when getting your budget in order – is to stop using your bank card, and switch to a cash envelope system. It isn’t complicated, it is really very simple. It is so much easier to over-spend when all you have to do is pull out a plastic card. It’s almost like you aren’t spending real money!
On the contrary, when you have to pull out cold hard cash to pay for your purchases . . . . well, it becomes more difficult to let go of that hard earned money.
As you can see, the theory is simple – and it works! It is a key component of the famous Dave Ramsey ‘Total Money Makeover’ plan and has been used by thousands of families, like yours – to get AND stay – out of debt.
- Budget every bit of your pay. Sit down and use our free budget planning sheet to get started on a family budget. Be sure to include a transfer to savings – even if it is only $5 or $25 dollars. Start with something. (Keep following our series to learn more about this type of detail).
- Next – set aside as many envelopes as you need for regular spending (gas money, groceries, milk money, lunch, entertainment . . . . everything except the bills that you pay directly via checking or online bill pay).
- Work the system . . . don’t cheat. When the money for each category is gone – then it’s gone. You may move some cash from one place to another if you MUST, but the cash you have is ALL you have. You don’t touch the account.
Try it out! Sit down tonight or tomorrow with your spouse (if applicable) and work out that family budget. Use our free budgeting sheet to get started. (See below to print it out).
Use the cash envelope system for the entire month – come back and check in. Let me know in the comments if you are going to accept the challenge. If you are on Facebook – drop by and check in. I’ll be asking how you are doing regularly and posting encouragement along the way with additional tips.
You’ll feel great at the end of the challenge to see how great it is to take charge of the family funds and begin the road to getting free of debt!
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