Question about envelopes... About This Page:

[graygables]

Is anyone concerned about keeping that much cash lying around? I've always been torn about using an envelope system, mostly b/c I'd rather the money be growing even a little bit of interest rather than sitting around my house and hubby is anti-cash b/c of his anxiety/disorders.

I think I'd do MUCH better if I had an actual envelope/cash and would have a much clearer picture AS I'm spending it, rather than the end of the month when I finally sit down to reconcile it all.

Do you have a safe you keep it in or a lockbox?

[Lemap760]

I don't keep a lot of cash on hand because I'm more likely to spend it. I use my Visa check card most everywhere and just keep a close eye on my spending so I don't go over budget.

[belleandmaddysmom]

Do you mean stashing cash in envelopes at home to save? I think that is what you mean.

I do have an envelope for stashing cash. I have started saving the $5 like someone else once suggested in a post. Only bad thing is that I know it is there. I have a shopping disorder that is a problem!

I also have stashed envelopes of disney dollars for my girls.
None of it is in a safe-just have a really good hiding place!!

[JennyM]

I have been saving out of my paycheck for our upcoming trip. I try and get a $100 bill when I cash the check and we use the rest for the weekly spending money. It does make me a tiny bit nervous but I feel better when I know I can actually have my hands on the cash if I need it. Also...this is weird...I like to be able to count it out every once in a while to keep me inspired to save, save, save! If it was in the bank, it would be too easy to spend but if it is in $100 bill increments, I have a real aversion to breaking them. The only place I can break a $100 without any fear or guilt is in Disney! I have a really good hiding place!

[poohmaine]

I mostly use my debit card as I am afraid that I will lose the cash!

[jimmymac]

I'm a big ATM user

[B.M.]

I never have cash, I've been known to use my debit card for items less than a dollar simply because I don't carry cash. I think this system works better for me because I keep an account of where I've spent by money. My cash tends to disappear.

[Caldercup]

I think Dawn is asking about the plan that some use to control spending. They create a series of envelopes and put cash into that -- as in, "Groceries = $100" and "Car - gas and tolls = $80", "school supplies = $15" etc. Once you spend the money in that envelope, you cannot purchase more in that category, unless you take money from another envelope..

I don't do this because I like to pay for things with a rewards card and pay that off at the end of the month.

One thing that you can do is to keep an expenditures book. So, instead of putting the cash in envelopes, you create a page for each category for the month. Put in an amount that you're budgeting for the month and then subtract each purchase in that category. When you reach zero, you either have to "borrow" from another account's page or you can't purchase any more in that category.

It's the same idea, but done differently.
Eileen

[twogirlsmom]

We lessen the amount of cash we're carrying by budgeting on a weekly basis instead of monthly. A lot of people doing Dave Ramsey budget monthly, therefore fill their envelopes monthly. But we decided that wouldn't work for us, so weekly it is. It's much easier to handle and it REALLY keeps our spending in check.

Wednesday is our money day. What we get out on Wednesday has to last through the following Tuesday. We still have times where we use the debit card "cushion" and go over our weekly allotment, but for the most part we've really curbed our spending by using mostly cash.

Another thing along these lines is saving change. We save all our change for our next Disney trip. Not sure when that is yet, but we're saving!!

[Grumpytiggernomore]

Dave's system of envelopes is based upon your pay schedule... our gets done weekly... DH is in charge of it and since he is the shopper, he's the one to keep track of everything... he just takes the envelope book with him when he needs it... Fri, Sat &/or Sun to shop... gas envelope when he needs to fuel up (since we're only using 1 vehicle STILL ),etc... We have not expanded the envelopes much yet, but it has helped us NOT TO SPEND FOOLISHLY and when it's gone, it's gone...

I am also one to have the cash (if any) in $100 bills--- temptation is not there and to leave it alone... I do have a very unlikely spot (and not one of those common unlikely spots criminals "miss" ). Even before DR's budget stuff, I did quite well w/ some of the envelopes... including monthly CC payments during the summer months when I don't get a check... I planned ahead and had the $$$ for them!

[Kristen C.]

i keep most of it in my savings account....but I also have a safe that we keep the disney dollars in.

[Straitlover]

I do an envelope system but not with actual cash. I use my debit card and put the receipts in the envelope (after logging in the checkbook) and keep a running tally on the outside of the envelope. I only have 3 categories (gas, groceries/food, and miscellaneous), so I only use the one envelope and list the 3 categories on it. If I go shopping and am buying grocery and misc stuff, I separate it out and ring it up as 2 sales so I have separate envelopes.

[janicelovesmickey]

I keep a bunch of "trip" spending money in an evelope in my drawer, I usually dont have to touch it.
its easier to not touch it when its large bills , but if there is a 20.00 I have dipped into it.

[patclairesmom]

I love using the envelope system. I like know that I have the money set aside for groceries, gas etc. Paying cash makes you more aware of what you are spending. Dave says, it's actually more painful to hand cash over, so you think about your purchases more.

I am not afraid to keep the cash in my house, since we do it also on a paycheck basis, our's being 1/2 a month at a time.