? for those of you who cash/envelop bujet

[Mirth]

first thanks for all the help you have already given me in revising my budjet. it has been a work in progress and now after 2 years hubby is finaly on board with the no plastic all cash thing. but now i dont know what to do. i allready have my money broken up into differant accounts in the bank but i am not sure how to execute the carying cash part. i have been using checks since i was 16 and never carry cash. i get that i need to have my food money on me... but things like clothing and bdays are thing that i stumb on during the year. so i guess i am asking what do you do? what do you keep with you... do you keep a plastic backup? how do you organize you moneys in your wallet?

[Mirth]

[classicmom]

Originally Posted by Mirth

first thanks for all the help you have already given me in revising my budjet. it has been a work in progress and now after 2 years hubby is finaly on board with the no plastic all cash thing. but now i dont know what to do. i allready have my money broken up into differant accounts in the bank but i am not sure how to execute the carying cash part. i have been using checks since i was 16 and never carry cash. i get that i need to have my food money on me... but things like clothing and bdays are thing that i stumb on during the year. so i guess i am asking what do you do? what do you keep with you... do you keep a plastic backup? how do you organize you moneys in your wallet?

For us, it took experimenting to figure out what works, but here's what our family does:

I have a cosmetic bag (like a money bag but smaller) that we keep all the paper envelopes with the separated cash in it. This does not travel around with us because I don't want to lose it. Tried envies in the purse, but I usually don't have a purse & neither does DH - ha, ha. It is secure at home; so it does take a little planning to use the cash - but our system is flexible. I go to the bank around payday (approx. 2 times a month for us) and for most categories (except babysitting & haircuts bc we ALWAYS use cash for those), I pull out 1/2 the monthly amount alloted for the category (b/f I go, I make up a little tally sheet & figure out how many of each denomination I need to distribute to the envies - takes about 2 minutes). I do it that way so that if I or DH are on the road w/out cash or want to buy online and use the debit card or write a check, there is still money in the category & we don't blow the budget as I definitely don't go to the bank to make deposits; I can just pull out less next time & even things up - hope that makes sense. We just go to the money bag as we're leaving and take the money we need for grocery shopping or whatever. Anyway, I pull cash for us for the following categories:

Food/Groceries, fast food/eating out, recreation/date nights, babysitting, haircuts, school lunch, and baby supplies/household.

We do NOT use cash for gasoline (use debit card) since it's really inconvenient, and we know how much we need for that category. I try to auto-pay as much as possible (including piano lessons, pre-school, etc.) so there is less cash to handle and no temptation to steal from the other envies. We also don't use cash for clothing or birthday presents. Birthday/gift money is transferred to another checking account so it's separate & then at Christmas time, I go pull out the Christmas money in cash so I can stay in budget that way. I like having a debit card though to purchase presents if I find them randomly since I most likely won't have cash on me. Car repairs $ and Home Repair $ is transferred to another account and we can access the money when we need it. I still don't have a working solution for clothing money (would like to see others' input). If I pull it out in cash, it gets spent on junk, lol. And in the bank, i spend too freely. But, we don't spend a whole lot on clothes right now, so it's just kind of floating and we usually are on budget since I am such a tightwad on buying clothes that are very, very cheap.

Anyway - I know that sounds complicated, but it is what we have developed after about 3 yrs. of doing cash and we don't even think twice about it now - it's habit. However, we did have to be really strict about cash in Jan. & Feb. to keep us on track w/ the budget so we pulled all the cash out at once & didn't spend w/ the checking account. And DH, who HATED cash in the beginning, now asks for cash before he goes out. I really love using cash now for most things.

BTW, DH & I each have separate checking accounts for our blow money (we get $25 a month). We LOVE LOVE LOVE this bc we both enjoy online spending or using our debit cards and neither of us have to report that spending to the other. For me, it is so nice to know I can go to lunch at a restaurant or buy make-up (with my card) and don't have to report or plan ahead. Allows me to be impulsive but in control (since there is no overdraft, I know exactly where my piddly little checking account stands). Anyway, we still feel like we have a normal life, but we can keep our spending in control. Good luck on this journey - I think it feels so good to use cash, so I hope you'll find joy in it too.

[Mirth]

thanl you for sharring you gave me a good place to start and some great ideas. I like how you use the best of both worlds. I cant wait to see what info ideas everyone elce has to offer.

[hhfreckles]

Originally Posted by Mirth

first thanks for all the help you have already given me in revising my budjet. it has been a work in progress and now after 2 years hubby is finaly on board with the no plastic all cash thing. but now i dont know what to do. i allready have my money broken up into differant accounts in the bank but i am not sure how to execute the carying cash part. i have been using checks since i was 16 and never carry cash. i get that i need to have my food money on me... but things like clothing and bdays are thing that i stumb on during the year. so i guess i am asking what do you do? what do you keep with you... do you keep a plastic backup? how do you organize you moneys in your wallet?

I do carry most of my cash with me. I use this envilope system HERE I used the free template and made my own.
The catagories that I split the money into are: Grocery, Diapers, Cloths, Entertainment (fast food, zoo, ect), Date Night, Incase Of, Gifts, Haircuts, Mine. These are always with me. At home I keep overflow envelopes for the extra or left over money from previous months for the catagories. especially for Gifts. I do also keep a credit card with me so if I come accross something for a gift I can get it and then just take the money in the envelope at home and put it in a 'spent' envelope. I don't use debit cards or checks at all so those stay home.
HTH

[Mirth]

thankyou for the link i will have to check it out. also thankyou for sharing what works for you. please keep the ideas coming

[digitalworld]

when we did cash, we just used it for groceries, household items and date/personal money. the other categories were not monthly (like clothes and gifts), so it was easier for me to track them in a spreadsheet as opposed to carrying the envelope. I would just use my debit card, or if I used cash I would record it on the spreadsheet and get more cash to go in my grocery envelope. I use a debit card mostly now, and just track what I spend. I think it's a lot easier. I've basically just printed a check register, it lists where, amount and balance. I start with the budgeted amount at the top, and just subtract what I've spent so I can always see where I'm at for groceries. On the back I keep track of dates, clothing, gifts, etc, and just reconcile it once a month to my master spreadsheet. I hope that makes sense.

[kseverso]

Originally Posted by digitalworld

when we did cash, we just used it for groceries, household items and date/personal money. the other categories were not monthly (like clothes and gifts), so it was easier for me to track them in a spreadsheet as opposed to carrying the envelope. I would just use my debit card, or if I used cash I would record it on the spreadsheet and get more cash to go in my grocery envelope. I use a debit card mostly now, and just track what I spend. I think it's a lot easier. I've basically just printed a check register, it lists where, amount and balance. I start with the budgeted amount at the top, and just subtract what I've spent so I can always see where I'm at for groceries. On the back I keep track of dates, clothing, gifts, etc, and just reconcile it once a month to my master spreadsheet. I hope that makes sense.

The "check register" seems like a very good idea. We use cash for groceries and dining out (when we remeber to keep our wallets stocked) but I found it hard to carry around to many categories. I have been using my debit card for other things (clothing and gifts) and then take it out of our envelope to put back in the bank when I get home. The problem is you have to be very careful. It is easier to spend more using your debit card than actual cash or to go over what you actually have in the budget. I just may try making some type of a register to keep in my purse to REMIND me that I really don't have the money I need for whatever I am thinking of buying.

[rachmom]

I have been afraid to use this system because of my fear of my purse/wallet being stolen. Then you are really at a loss! I'm ok with the debit card idea, but carrying all kinds of cash around really scares me. I have little ones too that are always getting into my purse. I just don't see how this could possible work out well.

[classicmom]

Originally Posted by rachmom

I have been afraid to use this system because of my fear of my purse/wallet being stolen. Then you are really at a loss! I'm ok with the debit card idea, but carrying all kinds of cash around really scares me. I have little ones too that are always getting into my purse. I just don't see how this could possible work out well.

I know that logically it sounds scary, but I love the freedom of staying w/in the budget by not overspending. I think the reason that most people are scared of losing cash is that they feel personally connected to it; it is "their" money wheras a piece of plastic doesn't portray same type of responsibility. This is why I spend more wisely and a cash system works well for our family.