Do you ever wonder where all of your money goes at the end of each month?
The time and planning it takes each month to create (and stick to!) a monthly budget can seem daunting. It doesn’t have to be! My husband and I decided to see how using only cash might help us save money. It’s a lot more “painful” to hand over a stack of bills at the cash register rather than a quick and simple swipe of plastic. According to DaveRamsey.com, A study of credit card use at McDonald’s found that people spent 47% more when using credit instead of cash. This is money you could have saved!
Here is what we have done to save hundreds of dollars each month at our house:
1. Make a list of all expenses for a month (to the best of your knowledge).
2. Make envelopes for a few categories you do the most spending from. We make ones for: Groceries/toiletries, Entertainment (date nights), and each of us have our own separate envelopes for “fun” money (magazines, coffee, etc..) and clothing. I got this super cute coupon organizer made by Real Simple (in the picture below) but paper envelopes in a plastic pencil pouch or makeup case work great!
Whether you’re a single working gal or one with a few mouths to feed and you’re trying to save a buck or two, try the cash system and let me know what you think!