Cutting the Budget Part 2:Cash Cash Cash

I know a lot of people think using cash is a little old fashion but it WILL save you money! My husband and I started using cash for almost all of our purchases over 3 years ago and we have saved hundreds of dollars a year. Every month we get a predetermined amount of cash out to use for Grocery’s, Eating Out, Entertainment, Toiletries, Haircare and Blow Money (to use as we want) then put in into envelopes to use throughout the month.
Dave Ramsey's Envelope System is how we got started! I know for a lot of people this can be overwhelming. I would suggested starting with just a few envelopes like grocery’s and eating out and expand from there. There are a lot of great resources and tools on the website to help you get started. And there is not better time then NOW!
Here are a few ways using cash has help us.
• Has focused us to plan ahead. You don’t want to use all your cash at the beginning of the month.
• If I don’t have any money left in that envelope I don’t buy it! This is hardest when it comes to the grocery envelope. When it is a week before the beginning of the month and I only have $10 left it can cause a bit of a problem, that is when planning ahead to so important. Sometimes if I have money left in another envelope I will use it. If you are new to using cash be sure to give yourself a little wiggle room in the beginning but if you aren’t firm in using the allotted money you won’t save!
• Easy to keep track of what I spend. Not many people could tell you quickly how much on average they spend on grocery’s a month. If you use some type of predetermined cash system to purchase things you will know how much you spend and can easily keep your spending in check.
• Makes me be creative! When you only have $10 left for the month you will go the extra mile to get the most out of the money. This is where coupons, watching for sales and stockpiling come in to play.
• We don’t pay interest! It would be so easy to go out to dinner or get that pair of shoes you love and put it on a credit card, but it is just as easy to forget to pay your bill at the end of the month.
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