The best way to stick to a budget is to pay with cash, and the best way to manage CASH is with a system that has been around for years and that is…..the Envelope System.

I learned about the Envelope System from my Maternal Grandmother, who did not know that what she was doing had a name for it; nonetheless, she budgeted for and managed the money she needed to pay her bills; such as, for the Insurance Man when he came around by putting the money she needed to pay that bill aside in an envelope to make sure that she had the money needed when it came time to pay her insurance.  As a result, after seeing how my Grandmother saw what her cash was doing, I embraced, implemented, and executed the same Envelope System regarding budgeting for the different category of bills I could pay with cash, including at times, budgeting for and setting aside money to shop with for household essentials; such as, groceries, clothing, toiletries, eating out, entertainment, etc. (with technology, paying bills with cash is becoming less and less realistic as with BILL PAY availability from the BANK you bank with makes it even more convenient).  In so doing, it allowed me to see what my cash was doing AND HOW MUCH I HAD LEFT AFTER EACH TRANSACTION and HOW FAST MY CASH WAS BEING POURED OUT and SUBTRACTED IN REAL TIME.

Understandably, in today’s time, walking around with cash on you is NOT SAFE; however, in today’s time, walking around with a Debit/Credit Card is NOT SAFE either because most of the times, those cards have access TO THE BANK YOU HOLD ALL OF YOUR CASH (THIS IS A GOOD PLACE TO SUGGEST:  If you frequently use a DEBIT/CREDIT CARD (to pay bills with and/or go out with), it would be in your financial, best interest to have the frequently used card CONNECTED TO AN ACCOUNT you ONLY ADD JUST ENOUGH MONEY TO, TO USE ONLY WHEN GOING OUT and then HAVE A SEPARATE ACCOUNT NOT CONNECTED TO A CARD…..that way, if the CARD you frequently use is LOST, HACKED, or STOLEN…….IT WILL NOT LEAVE YOU VULNERABLE to being COMPLETELY, WIPED OUT FINANCIALLY).

When you go to the store with cash in hand, you know exactly how much you can spend (and possibly lose).  What is more, you will stick to your budget because you can ONLY spend what you ONLY in your purse/wallet.

If you still find you’re eating high on the hog at the beginning of the month and scraping by on tuna by the end, make a cash run for groceries every two weeks instead of every month. That way, you’ll have a better picture of how much you can actually afford to spend each week.

Financial guru, Dave Ramsey shares some practical ideas and insight regarding his take on how the Envelope System works and SHOULD BENEFIT YOUR BOTTOM LINE in his BLOG The Envelope System Explained.

Whether you want to give the Envelope System a try or not (with just envelopes you may have at home), within this BLOG article, The Envelope System Explained, Dave Ramsey offers for FREE his 15 page Every Dollar Guide to Budgeting to download and aide you in creating a BUDGET and began to take control your finance……along with a FREE, EASY BUDGETING TOOL (Every Dollar) that allows you to realistically focus on your incoming and outgoing dollars and cents with options to upgrade this very handy budgeting tool.

Peace and Grace,
LaTrica

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