Let me start by saying happy Saturday, I have missed you all. My sweet babies are finally better although my little blog was neglected all week as a result of their bugs. Thank you so much for your well wishes. I am SO ready to jump back in to Let it be Lovely. Yay!
Like most of us these days, we are not as secure financially as we would like to be. So with all of the buzz going around about cash budgets, I thought I would give it a shot. It certainly couldn’t hurt, right? The concept was derived by Dave Ramsey, a financial guru of sorts, and is based on the idea that if you never actually see your money (in the bank) you are more likely to spend it than if you have cold hard cash in your hands. Wouldn’t you agree that it hurts a lot more to hand someone a $50 bill than to swipe your debit or credit card? It does for me.
To hear about the concept straight from the source head over to Ramsey’s explanation here.
I am not at all skilled in budgeting but have been pinching pennies fairly well in the last year or so. Still, it wasn’t good enough. I needed to figure out how to budget fun stuff in for our family instead of cutting it out all together. So maybe, just maybe, if I try this cash budget system, I can more actively save a little here and there for a fun little family date every once in a while. Whether it be Chuck E Cheese’s (cringe), a kid friendly movie, or going to the petting zoo, we need to get out and have fun together. There is only so much a family of four can do for free.
Enter the Cash Envelope System. I probably could have made this easily, but the thought of dragging out my sewing machine when Baby Bear is being Captain Distruct-o sounded positively miserable. Instead I went to my good, old friend, Etsy for assistance. There I found a blinding assortment of systems ranging from paper envelopes to laminate to designer fabric. Most of these had six or seven envelopes for dividing your cash into separate budget categories. Some had envelopes that were loose, some were attached in a wallet or organizer. And speaking of budgets, there was a set for every price point. Some of them were entirely too rich for my blood. I mean, people buying these are trying to save money right? It would kind of suck to go broke buying a budgeting aid.
Anyway, I picked out a winner that was reasonably priced and nice to look at from Brooklyn Accents. {Be sure to check out the shop and say hello}
The seller, Brook, created the system in a customized color combo just for little ol’ me. The shop is very small and is just getting started, just like mine, so that was another selling point for me. I am all about helping out anyone who is a newbie, like so many people have helped me out along the way. Brook was very friendly and accommodating. A joy to work with. My cash envelope system, complete with a matching carrying case was ready in a snap and shipped quickly. As soon as I received it, I made some handy labels for each one and quickly realized that I need to order two more envelopes for my system. I have one for each of the following categories:
- Groceries
- Gas
- Kid Stuff (diapers, etc.)
- Household (light bulbs, cleaning items, etc.)
- Entertainment
- Eating Out
The two additional envelopes I am ordering are for Tithing/Giving and Extra to Save or Spend.
Now all I have to do is wait until payday to start using the system, as I thought it would be easiest to start at the beginning of the pay period rather in the middle. At that time I will calculate what bills I will be paying via Bill Pay or auto-payment and leave that amount in the bank, as well as enough to put my standard amount in to the kid’s savings accounts.. Everything else is coming out in cash and will be further separated according to the budget I will set up for the following two weeks, them put in to the correct envelopes for each category. I considered doing this on a monthly basis, but decided to try it one paycheck at a time for now, at least, so it is not too overwhelming, and not too much cash is floating around.
I hope this works out as well as I anticipate. I will give you an update once I get the hang of the system. I am so excited to try something new, and to have a little dough left over to spend on my family.
What budgeting tricks work for your household? Has anyone else tried the cash envelope system?

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