Living on cash is not always easy.

I wish I could say that it was but sometimes it requires a lot of discipline.

I am SUPER forgetful.

I will make my grocery list, have my coupons organized, have my list organized by aisles and sections of the store… I will do my best to stay within my budget and I will straight up let the cashier ring it all up only to realize I left my cash at HOME! This WILL happen.

Living on cash for us means just that–we only spend cash. Now I will say that the scenario above has happened… and I swiped my debit card. {OH THE HORROR!!!!} I also came home, got the cash I MEANT to take with me and went straight to the bank and deposited it. That wasn’t a “Freebie”… I had to replace what I had just used.

We use cash for the following things:

Groceries

Gas

Fun

Extras

Clothes

Each pay period a set amount of money goes into each envelope.

“What happens if there is money left over?” You decide.

Our plan is to keep the extra money in the envelopes and not use it somewhere else. For example, I put $100 dollars aside each month for clothes. I don’t spend that each month. That will often pile up because we may not need anything. But when it is TIME to need something there is money to spend. I rarely have extra money in groceries left over.. and occasionally I have borrowed from the gas envelope to pay for a quick trip to Kroger. That’s okay! {for us anyway} The bottom line is that this is the cash we have and if we choose to spend the clothes envelope to go out to eat and to the money we CAN… but can’t buy clothes that month.

SPENDING CASH MAKES A DIFFERENCE.

cash

I don’t know why, but it does. I don’t think of myself as an over-spender by any means but even for me I spend less when I use cash. Even if I had a pre-paid debit card with money on it, I would spend more by swiping. {Can someone explain that to me??} Cash makes a HUGE difference for us.

We have income coming in each week. Fortunately we are on opposite pay days but it that happens to mean we get paid each Friday. So after I pay my bills each Friday I then go withdraw the set amount of cash designated for that week. And then it goes straight into the envelopes.

EXTRAS

Dave Ramsey will tell you to plan for emergencies by having $1000 saved up. DO THAT! Do it now–today–this week!! But the point of that is to recognize that things WILL happen. So our EXTRAS envelope helps with that. We have our $1000 in savings for the emergency fund but I also recognize that things happen we can’t/haven’t budgeted for. In my budget binder I have a sheet titled “Things to plan for that we can’t really plan for”. {I am so creative–riiiighttt?} My list has things on it like: oil changes, air conditioner vent things (legit how I have it listed), light bulbs, birthdays, essential oils, hang-outs.

I do NOT want an envelope for light bulbs. And I don’t want one for things like propane tank for the grill. So I summed it up and called it EXTRAS. Extra stuff WILL come up. You will have planned perfectly and bought your groceries, filled up your car, bought your kid a new coat, and then someone will call and invite you to dinner. Well you don’t wanna show up empty handed now do you?!?! #EXTRAS

The neighbor who is just too cute to turn down will ask you to buy popcorn for his school fundraiser. #EXTRAS

You will burn something in your oven and you MUST buy a candle. #EXTRAS { I mean- that’s never happened to ME but I’ve heard of that…}

Have you ever gotten to the end of month and realized that you don’t recall a fun night out or buying anything extravagant yet you have $18 dollars to your name? {My hand is raised… you just can’t see it} If you are TIRED of that happening then you MUST make a change!! Maybe you make really good money and so creating a budget and/or cutting back hasn’t crossed your mind? I get that! But what if you could have MORE?

hand

Maybe the cash plan isn’t for you. Just find what works. I PROMISE you that each little thing you do will have an impact on your financial health.

Thanks for reading!

For now,

Cara Roxanne

 

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