If you think that using cash envelopes is old fashioned, you are right. Using a budget and putting the money for each category into an envelope marked for that category has been used for generations. I want you to know that, in this case, “old school” is awesome! This is the easiest way to stay on a budget. Fund the envelopes at the beginning of your pay period and spend freely in that category until the money is gone. This gives you a real tangible way of knowing how much you have left in each budget category. It gives you piece of mind, because you can’t spend the money twice like you could with a debit card. If there is money in the grocery budget, then you can buy groceries. Another benefit is that by using cash instead of plastic you will spend about 18% less. I am living proof of this. Start out with one or two envelopes (groceries and entertainment) and then gradually add some. If after a couple of months you don’t see your dollars stretching farther then go back to the debit card. I believe this is a sure fire way to stretch your budget. One of the complaints I hear most about carrying cash is that people are afraid of it being stolen or losing it. Chances are you are losing about 18% every month carrying a debit card. After 6 months with a debit card you’ve lost one whole months money! (18% x 6). For us, we spend 25% less and didn’t notice any real change in lifestyle. We just made better decisions.
Whoever can be trusted with very little can also be trusted with much,…
Trust in the LORD with all your heart and lean not on your own understanding; in all your ways acknowledge him, and he will make your paths straight.
Cast all your anxiety on him because he cares for you.
1 Peter 5:7