Knee Deep in Water Chloe
Senior Associate
Joined: Dec 27, 2010 21:04:44 GMT -5
Posts: 13,704
Mini-Profile Name Color: 1980e6
|
Post by Knee Deep in Water Chloe on Dec 28, 2010 0:06:45 GMT -5
Hi! Who is using/has used a cash only/envelope system? Do you have any suggestions on how you made it successful for you?
We just started this last month. We only get paid once per month.
We are currently using envelopes for gas, groceries, dining out, and my husband's fun money.
We have an envelope for each week of the month for groceries, but only one envelope each for the entire month for gas, dining out, and my husband's fun money.
What do you do when you forget to get cash and then you're at the gas station?
What do you do with money that's left over?
What do you do if you actually spend all the cash before the next pay day?
|
|
DVM gone riding
Senior Member
Joined: Dec 20, 2010 23:04:13 GMT -5
Posts: 3,383
Favorite Drink: Coffee!!
|
Post by DVM gone riding on Dec 28, 2010 0:14:45 GMT -5
I use envelopes only for things I tend to have issues with. So I don't use envelopes for gas-I do use a dedicated CC though, I have a bad "habit" of stealing from one envelope to another! so maybe X cash works better for me. Where I had issues was lunches out, eating out in general, and what I call "random" house spending-little things like weed killer. If you are going to do this when the money is out it is out, My check wasn't auto deposited (employer won't let me) so I never forgot to get cash.
|
|
dianartemis
Well-Known Member
God made me and started laughing
Joined: Dec 20, 2010 15:43:10 GMT -5
Posts: 1,722
|
Post by dianartemis on Dec 28, 2010 0:25:34 GMT -5
I have 3. Groceries, fun $, clothing. Any paper $ goes back into the envelope it came from. Change goes into my piggy bank.
If I need more grocery $$, I can pull some out of savings, but only enough to last me until next pay day. It took some time, but I rarely go over my grocery budget now. This is where meal planning is key.
For fun & clothing $$, once it's gone, it's gone.
|
|
redracerris
Established Member
Dance to have fun and like no one else is watching.
Joined: Dec 26, 2010 11:57:46 GMT -5
Posts: 304
|
Post by redracerris on Dec 28, 2010 13:08:23 GMT -5
I've been playing around with the envelope system for a couple months now. I have Food, Grocery, Cats, Gifts, Business, Clothes, DH allowance, dining out and I think that I'm going to start making one for car repairs/maintenance. Oh yes, I also am saving up for gardening this coming year. All of my other bills I pay online or with a check. And like dianartemis, I put change into a piggy bank. I know it's weird, but it's going towards a down payment on a house.
|
|
Knee Deep in Water Chloe
Senior Associate
Joined: Dec 27, 2010 21:04:44 GMT -5
Posts: 13,704
Mini-Profile Name Color: 1980e6
|
Post by Knee Deep in Water Chloe on Dec 28, 2010 18:00:31 GMT -5
We should start a clothing envelope too. We go in spurts on when we buy clothing--nothing for a few months in a row, then an outlandish amount.
|
|
Deleted
Joined: Mar 28, 2024 19:58:04 GMT -5
Posts: 0
|
Post by Deleted on Dec 28, 2010 18:09:03 GMT -5
I see you mention your husband's fun money, but what about fun money for yourself?
|
|
Knee Deep in Water Chloe
Senior Associate
Joined: Dec 27, 2010 21:04:44 GMT -5
Posts: 13,704
Mini-Profile Name Color: 1980e6
|
Post by Knee Deep in Water Chloe on Dec 28, 2010 19:08:02 GMT -5
Yeah, he asked that question too. I'm working on that. I'd rather put what would be my fun money towards debt, vacations, or dining out. I truly struggle with spending any money whatsoever. I actually get a sick feeling just purchasing food at the grocery store. So, last month, dh took his fun money and bought me two pairs of pants at Ross's.
|
|
dianartemis
Well-Known Member
God made me and started laughing
Joined: Dec 20, 2010 15:43:10 GMT -5
Posts: 1,722
|
Post by dianartemis on Dec 28, 2010 20:42:04 GMT -5
UWC - Give yourself permission to spend something for fun. Experience talking here - if you don't, all that pressure is gonna build up and you'll go spend bonkers. <raises hand and points at self> $20/mo or $10 or $5 aren't going to make a huge difference on speeding to your goals, but they can help out with your outlook on life. Also, how long will it take for either you or your DH to get resentful of a situation where one can spend and the other can't?
|
|
mommax4
Junior Member
Joined: Dec 27, 2010 11:44:14 GMT -5
Posts: 114
|
Post by mommax4 on Dec 30, 2010 16:26:53 GMT -5
We do cash for groceries, spending money, clothes, gifts, travel/vacation, and (in November/December) Christmas. Money can accumulate, but you're not allowed to borrow, so if the grocery money is gone, we're eating whatever is in the house.
|
|
ses
Familiar Member
Joined: Dec 20, 2010 14:18:37 GMT -5
Posts: 654
|
Post by ses on Dec 30, 2010 16:41:16 GMT -5
UWC--I have learned to do my grocery budget out of a monthly envelope. This way I can stock up on sales of staples i know i will use and have a fully stocked pantry so there will always be food, even when there is no more money
|
|
Knee Deep in Water Chloe
Senior Associate
Joined: Dec 27, 2010 21:04:44 GMT -5
Posts: 13,704
Mini-Profile Name Color: 1980e6
|
Post by Knee Deep in Water Chloe on Dec 31, 2010 12:34:25 GMT -5
UWC--I have learned to do my grocery budget out of a monthly envelope. This way I can stock up on sales of staples i know i will use and have a fully stocked pantry so there will always be food, even when there is no more money After yesterday, I'm beginning to realize this. I'm struggling with doing the Costco run, and then divying (sp?) up the remainder of the money over the remaining four weeks. However, yesterday, I had to borrow $20 from nextweek's envelope. It's not that we were out of food, it's just we had to buy dog food, and I forgot to plan for that in the "big" trip. My concern, which prompted the envelopes in the first place, is that dh will spend way too much in weeks 1 -3 and there just won't be anything for even milk in week 4. At this point, I'm supposed to make it to Jan 4th before taking the "next week" but there's no money left and we need milk!
|
|
Elderkind
Established Member
Here Kitty, Kitty, Kitty....
Joined: Dec 23, 2010 11:33:49 GMT -5
Posts: 251
|
Post by Elderkind on Jan 1, 2011 11:06:18 GMT -5
Underwater Chloe: I've used the envelope system in the past and it does work. In fact, I would like to start using it again this year. Concerning the milk issue, when I would run short in my grocery envelope, I would raid my fun money envelope. That taught me real quick which staples were more important than others. If you continue to have the problem then you may need to revise your grocery budget a little and add an extra $25 every month.
|
|
8 Bit WWBG
Administrator
Your Money admin
Joined: Dec 19, 2010 8:57:29 GMT -5
Posts: 9,322
Today's Mood: Mega
|
Post by 8 Bit WWBG on Jan 1, 2011 12:47:11 GMT -5
...:::"What do you do if you actually spend all the cash before the next pay day?":::...
I think if you are going to adopt a hard-line system like the all cash diet, then the answer to this question is "you do without, and learn for next time". IMO (not meant to be offensive) anyone adopting an all cash system is doing so to prevent overspending in certain categories.
I personally don't like carrying a lot of cash, but DF and I are making a big effort to cap spending in our problem areas. I think our biggest budget busters are weekend spend-creep. Time to start keeping snacks in the car.
|
|
phil5185
Junior Associate
Joined: Dec 26, 2010 15:45:49 GMT -5
Posts: 6,409
|
Post by phil5185 on Jan 1, 2011 13:07:00 GMT -5
Oh yes, I also am saving up for gardening this coming year. If gardening costs money, why would you do it? OTOH, if gardening makes money, you would take it from the grocery money.
|
|
NastyWoman
Senior Associate
Joined: Dec 24, 2010 20:50:37 GMT -5
Posts: 14,233
|
Post by NastyWoman on Jan 1, 2011 18:20:59 GMT -5
my "cash system" is an annual budget on which I measure the over/under for each category. That allows me to have my occasional COSTCO run and offset this with underruns in other months. Works well for me since I don't have any problems with not spending for things I don't need--- it is more of the opposite: I have a hard time spending just for fun things (except for-budgeted- vacations). But long story short, it is the measuring against the budget that keeps me in line
|
|
Knee Deep in Water Chloe
Senior Associate
Joined: Dec 27, 2010 21:04:44 GMT -5
Posts: 13,704
Mini-Profile Name Color: 1980e6
|
Post by Knee Deep in Water Chloe on Jan 1, 2011 19:51:29 GMT -5
my "cash system" is an annual budget on which I measure the over/under for each category. That allows me to have my occasional COSTCO run and offset this with underruns in other months. Works well for me since I don't have any problems with not spending for things I don't need--- it is more of the opposite: I have a hard time spending just for fun things (except for-budgeted- vacations). But long story short, it is the measuring against the budget that keeps me in line This sounds like what I did when it was just me. My husband and I have been living together for three years now and we're still trying to work out the kinks in our system. I'd love to adopt a hard line as WWBG says, it's still just the financial differences between dh and I we're trying to compromise on. And, the eight year-old needs milk. Uggh.
|
|
Rocky Mtn Saver
Junior Associate
Joined: Dec 23, 2010 9:40:57 GMT -5
Posts: 7,461
|
Post by Rocky Mtn Saver on Jan 2, 2011 20:16:37 GMT -5
I've used the envelopes for about 1 1/2 years now, and I love it. I'm a big believer. But I also maintain a small cushion in the checking account for things that come up that are outside my planned expenses. You're right, people have to eat. Perhaps you can create an 'unplanned expenses' envelope that you can use as a cushion when you really need to. It depends on how much self-discipline you have.
As for not having the envelope when you get to the gas station, I carry some envelopes with me. My gas envelope for each car is in the car's glove box. I carry a couple of other frequently-used envelopes tucked away in my purse (entertainment, misc planned expenses, etc). Others stay at home in the freezer. And a few other envelopes are actually "virtual envelopes" that are categories or accounts within my online banking. I use these to fund tuition, travel, car repairs and replacement, etc.
Finally, I agree that you should seriously consider creating a category for your own non-necessary expenses. You can't deny yourself everything -- it's not healthy. I, for example, have solved my entertainment needs with my 'what do you do with leftover money' question. Leftover money in the necessary category envelopes gets put into my entertainment envelope. That way, I can have fun while being motivated to be even smarter with my planned expenses.
|
|
aprilleigh
Junior Member
Joined: Dec 20, 2010 15:22:50 GMT -5
Posts: 214
|
Post by aprilleigh on Jan 2, 2011 23:24:39 GMT -5
I tried actual envelopes, but it was too awkward for me. (Yes, I'm probably too vain! So I bought a pretty fabric-covered accordion file, like for coupons. I found it on Etsy (there's actually quite a few people selling them!) and asked the seller to make a small pouch for the coins. I just carry it in my purse so I have all the "envelopes" with me. Theoretically, I budget $20 a month for clothing, which should go in the clothing slot and accumulate for the next purchase, but I rarely take that money out of my checking account. The only really active categories for us are groceries, eating out and gas. The leftover money, if there is any, is usually used for fun, gifts, rolled into next week or put into my "treasure box" until I put it back into savings. Just depends on what's going on at the time.
|
|
Poppet
Established Member
Joined: Dec 28, 2010 15:45:12 GMT -5
Posts: 364
|
Post by Poppet on Jan 3, 2011 14:52:16 GMT -5
What do you do when you forget to get cash and then you're at the gas station?
You do what your ancestors did, you don't get gas.
What do you do with money that's left over?
I myself would declare it a miracle and stash it into savings or stock up the pantry.
What do you do if you actually spend all the cash before the next pay day?
You do without so it's painful enough that you don't do it again.
Your what if scenarios all center around the lack of forethought or lack of planning.
It's vital that you learn really fast how to cope in a cash only system or you're bound to fail and revert back to credit usage.
It's that simple. And that much of a bummer.
|
|
jando
Established Member
Joined: Dec 22, 2010 20:55:57 GMT -5
Posts: 327
|
Post by jando on Jan 3, 2011 21:03:24 GMT -5
Prioritize. I make sure I have the staples, then I might make a Sam's Club run. And bulk stores can be dangerous places. Make a list and STICK TO IT. Same at the grocery store. Have tunnel vision and only get what you need. I don't really even meal plan, but I managed to stick to my grocery budget by skipping snack/chip/soda/ice cream isles. The very first things I put in my cart are ingredients for meals...mostly shopping the perimeter, baking isle, and spice & can isles. Also, use your cellphone or a small calculator to keep a tally going while you shop.
|
|
cleanslate09
Junior Member
DeBT eLiMiNaTOR
Joined: Jan 4, 2011 13:32:12 GMT -5
Posts: 139
|
Post by cleanslate09 on Jan 4, 2011 16:51:05 GMT -5
I am using the envelope method, well kind of. Instead I have jars in my home office that are labeled for each of my category. It works great for me because I have to plan to spend versus just pull out of an envelope in my purse. If you are having problems sticking to your grocery allowance and overspending, would it help to go and just carry enough money in the envelope for what you actually budgeted that week and only enter the store with that amount? Just a thought.
|
|
Knee Deep in Water Chloe
Senior Associate
Joined: Dec 27, 2010 21:04:44 GMT -5
Posts: 13,704
Mini-Profile Name Color: 1980e6
|
Post by Knee Deep in Water Chloe on Jan 5, 2011 22:18:42 GMT -5
What do you do when you forget to get cash and then you're at the gas station?You do what your ancestors did, you don't get gas. What do you do with money that's left over?I myself would declare it a miracle and stash it into savings or stock up the pantry. What do you do if you actually spend all the cash before the next pay day?You do without so it's painful enough that you don't do it again. Your what if scenarios all center around the lack of forethought or lack of planning. It's vital that you learn really fast how to cope in a cash only system or you're bound to fail and revert back to credit usage. It's that simple. And that much of a bummer. You know, it's pompous crap like this that convince me it's a waste of my time posting here. I have no problem with people who have different perspective, but to go out of your way to be a jerk is just not necessary. I hope you're not this rude normally, and just decided to take an abnormal bad attitude out on me. Thanks to those of you actually posted your thoughts constructively. I appreciate your ideas, and will use many of them to help us tweak our envelope strategy to be productive. Phil, that advice came from a guy who showed up at my exhusband's work for the 401k and I was taking out student loans to pay for day care. So, we were borrowing money in order to pay living expenses, not borrow money to use debt as an actual advantage. I understand what you mean, and what you've said in the past about using debt as a tool for financial gain, but thanks for reminding me. Enjoy your day!
|
|
Poppet
Established Member
Joined: Dec 28, 2010 15:45:12 GMT -5
Posts: 364
|
Post by Poppet on Jan 5, 2011 22:50:41 GMT -5
You know, it's pompous crap like this that convince me it's a waste of my time posting here. I have no problem with people who have different perspective, but to go out of your way to be a jerk is just not necessary. I hope you're not this rude normally, and just decided to take an abnormal bad attitude out on me.Really? It was rude? When I wrote it I wasn't trying to be jerky at all. Or pompous. Just matter of fact. When you go cash you have to make changes and plan ahead, s'all Sorry you took offense.
|
|
suziq38
Well-Known Member
I love to save
Joined: Dec 22, 2010 21:11:27 GMT -5
Posts: 1,160
|
Post by suziq38 on Jan 14, 2011 20:33:37 GMT -5
This message has been deleted.
|
|
suziq38
Well-Known Member
I love to save
Joined: Dec 22, 2010 21:11:27 GMT -5
Posts: 1,160
|
Post by suziq38 on Jan 14, 2011 20:39:47 GMT -5
This message has been deleted.
|
|