I did a post a little while back on the Cash Envelope System and wanted to revisit this topic and discuss whether it is working/ changes that I would like to make. Feel free to read my original post on the Envelope System here.
- I didn't like the idea of carrying around so much cash in one location
- I would out of habit, reach for my debit card and pay for fuel, food, clothes etc instead of using cash
- I always forgot to withdraw cash and put it in the envelopes
- The tabs could use more relevancy to what I need the cash for
Going through each of the points on why it didn't work out on my first attempt, I decided to correct each point, make a new envelope system and give it another try. We pay the brunt of our bills online, but things such as: clothing, fuel, food, take out, and auto I would like to start paying careful attention to as they are easily under-budgeted.
I used a floral dress that I had bought for $5 from Kmart last year that didn't fit me and I was never too keen to wear, as well as a clutch/wallet that I have had for a few years and never use. I don't have a sewing machine so this entire project was done by hand and all in all took 3 hours (broken up around chores and children.)
Each pay I am going to take the budgeted amount out for each category and once that money is gone, that's it for that category. Although I am still figuring out how much we will need for fuel at this point.
I have 5 cash envelopes built into the wallet along with 4 card holder spaces.
I haven't permanently labelled the envelopes at this point but I am going to simply put sticker labels on them so I may chop and change categories should I want/ need to. In regards to having lots of cash all in the one place, I won't be carrying it around with all the money in it. This is simply a 'holding device' for me to check and see how much money in each category I have left until our next pay.
Which do you prefer?
|The Denim Pocket Edition|
|or the Black & Floral approach with a snap clip.|
How do manage your money? Debit Card? Credit Card? Or do you use a system similar to the Cash envelope?
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Until Next Time,