I've never really had a set budget but I have a pretty good sense of our input and output. However, some months we are more frugal than others. I will admit that our biggest problem is eating out (but I'm working on freezing more meals so we'll always have something available to make for dinner). We eat out for dinner about once a week and I'd say there's a lunch thrown in there on most weeks, too. The problem is, by the time you throw in a Starbucks Chai Latte and a happy hour after work and the "budget" is blown.
I have often heard of people who stick to a budget by using cash only to pay for everything. That was never really practical for us with a biweekly paycheck. Well, now my husband gets paid only once a month so I decided it would be the perfect opportunity to give this budgeting strategy a try.
So starting this month, we will have a family allowance (for eating out and entertainment) and my husband and I will each get our own personal allowance (for aforementioned Starbucks and happy hour treats). This way I won't feel guilty for that Hobby Lobby splurge and my husband won't feel like he has to ask permission to buy a soccer jersey.
Any of you out there use the cash only method? How does it work for you? Any tips for a novice? Or do you have a different budget strategy that works for you?
Wish us luck! I'll let you know how it goes!
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well, both me and my husband have month allowances and we pay things with cash but the staff that is for the house (or the familly) we use card money but not credit cards, that is a trap.
ReplyDeleteI've just started using the envelope system and find that I have much more control over my spending. I used to just spend and think I'd mentally noted how much was left but I was always way out. I used the envelope system on holiday recently and did so well that on my last day I had plenty left over to buy some treats! This is only really my second month but so far it's working for me!
ReplyDeleteGood luck!
~Sam
We've been using cash for quite a while now, and it's worked great for us! I think the trickiest thing for me is stretching the funds to make them last for an entire month. We replenish our envelopes once a month. I have found it to be helpful to be more frugal at the beginning of the month, so I'm not left with nothing during the last week or so. We also break our budget into several categories, which has worked well for us. I look forward to hearing how this works for you!
ReplyDeleteI have just ordered Dave Ramseys' Total Money Makeover book and am wanting to start being more frugal and pay off our car debts! I mentioned to my hubby about using cash and he sees little point because we get 2% back on the credit card when we use it. I still think it's a trap and I spend more if I use the CC, so I might give the cash thing a try, especially for groceries for the month!
ReplyDeleteWe've used cash for everything, except bills for years. It makes you think twice about buying things. As Dave Ramsey says, "paying with cash hurts more than a credit or even debit card". Go for it! I would recommend Dave Ramsey's material as well!
ReplyDeleteDave Ramsey's Total Money Makeover CHANGED OUR LIVES. Literally. We went to his method (though at first I didn't see HOW it would work, I thought "we barely have money for bills, let alone money for envelopes"). But when you have a WRITTEN budget (key is writing it down!) then it works! The written budget is like magic. We paid off over $10,000 in debt our first year, and that was with decreased work money too. Life changing! We have hope now for a bright and FUN future (still struggling through our big $30,000 2nd mortgage payoff, but we're getting there!)
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