My husband and I have been using the cash only budget system for a few years.
We were motivated by Dave Ramsey and his Financial Peace seminar.
Our credit card debt was also a real motivating factor.
When we started the cash only system, I also began an effort to use coupons.
I started researching ways to save money in all areas of our lives.
I checked out thrifty ideas from the internet and even made my own laundry soap.
These things have all become a habit now - a way of life.
The cash only system was a real eye opener for us. The most amazing thing to me was how painful it was to hand over my hard earned cash.
Using a credit card was so much easier. It didn't hurt at all!
But when I started the cash only system, I noticed that I was thinking more about what I purchased. Did I really need it? Or was it something that I just wanted?
Actually looking into my cash envelopes and seeing the money slowly (or in some cases quickly) disappearing every two weeks had a real impact on me. I could SEE the money being spent.
There have been some set backs along the way but through it all we have maintained a sincere effort to use cash in every situation possible.
I am curious to hear about others who are using this system - What is working for you? What are the problems that you have come up against? Any suggestions for others?
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We too have been successful with the cash only system. Glad to see you and your husband are on the same page. That is an important step.
ReplyDeleteIf you are married, get on the same page as your spouse. My wife and I battled for the first few months getting used to sticking with the budget allowance. Don't give up! It will eventually become second nature and as soon as you start seeing results you will be hooked!
Hi Cathy,
ReplyDeleteI bought some of your cash only envelopes and I love them. I am a college student who struggles with my finances. Never enough money to go around! The cash only system has been hard for me to maintain but the envelopes have made me have more discipine to keep it going!
Thanks, Karen
I am still transitioning to the cash only budget system - we have always used credit cards (paid them off in full, but still...) and it's been a strange transition. I'm definitely spending less - like you said Cathy, watching the cash *quickly* disappearing has a had a huge impact on me. I can't believe how much JUNK I used to buy! WOW! I love my fancy envelopes too... I've gotten SO many compliments! :)
ReplyDeleteGot our new cash only envelopes for our new budget program and they are great. Using paper envelopes seemed so tacky. Now we can make our purchases in style. Thank you so much.
ReplyDeleteFor the aesthetically inclined who get sad looking at a beat to hell envelope..this envelope system is far cuter.
ReplyDelete