Why is cash envelops such a tough discussion?

In the mist of Covid-19 (Corona Virus), we at JDS WebDesign are hoping everyone is safe, washing your hands frequently, sneezing and coughing in your elbow, and practicing social distancing.  Over the next several weeks, we are planning on blogging about how to make your website more business friendly.  We will have some tutorials on our favorite plugins and features, which will make your site more efficient.

One of the ways to save (or not overspend) is to use cash envelops.  It is a really simple approach.  Select an item, which you purchase on a regular basis.  Determine a budget, place that amount in an envelop, and take the envelop with you during the commission of that purchase. It is a really simple process.

So why does the envelop system cause so much stress and hardship?  It forces you to plan (you got to have the envelops). Impulse spending become a non issue.  Overspending does not occur.  No money, no purchase.

Dave Ramsey

Dave Ramsey, states that “cash envelops eliminates impulse spending.  When we spend money (cash envelops)…the transaction is we select a product or service, hand over some cash and receive the product or services.  However, when we use plastic (credit cards)…the transaction is slightly different, we select a product or service, hand over our card and receive the product or service, then get our card back.  We get the product or service and get our card back.  This is a win win scenario, according to our brain.”

No argument from me about getting something and not losing money at the same time, you are kicking your payment down the road.  Of course if it is a debit card, then the funds are removed immediately.  However, how do you keep your budget tight?  You can go over your budget amount, if you do not use cash.

Safety Concerns

While I would not recommend pulling out thousands of dollars, and caring it around.  Loss of cash envelops is a huge concerns…however, I only pull out the cash when I am going to make the transaction. Yes, I am using the cash envelops to assist me with staying on budget.  Food is always a tough one, for me and my family.  With a growing family, we are finding it more and more difficult shopping and staying within budget.  We are doing the following.

Everyone knows the budget.  We go to the grocery store on a bi-weekly basis.  Typically I go to my banks  ATM (Asynchronous Transfer Mode) Machine, and draw out our budget amount.  Certain items are purchased every week, such as milk, bread, water, coffee, creamer, pasta, cereal, bagels, eggs, and popcorn (we have a movie fetish…do not judge us), we keep a list on the side of our refrigerator.  This makes us as a family determine, what we want to eat over the next couple of weeks.  We purchase enough meals to last us for two weeks for dinner, and lunch.  Sometimes this is a family outing, but most of the time…I just pull the list and hit the grocery store.

I am not the best bargain shopper, but I am very discipline on when to shop and how much to spend (really I just do not overspend).  Since I am the guy with his shopping cart full, then I do not have to worry about having a lot leftover cash. I try not to spend all the money, and generally will go out during the week…if we run out.  But there has been times in which we ran out of something and I had no money left in the cash envelop, and guess what we survived.

I would strongly encourage you to try this budget method…it really has help us to stay on point with our budget and saving.

Image courtesy of Vladimir Solomyani.

 

 

 

JDS WebDesign is a Web Design and Brand Marketing Agency located in Marietta, Georgia.  We create AWESOME on line presence for Start-ups and Influential People/Organizations.  To learn more about us or how we can help you and your organization, you can contact us or schedule a meeting.

Join our mailing list to keep up with JDS WebDesign and find get tutorials and information about how to improve your website or business.

Would you like to speed up your website in 15 minutes?

We can show you how to improve your website speed within 15 minutes with a few free plugins.

You have Successfully Subscribed!

Subscribe To Our Blog

Subscribe To Our Blog

Join our mailing list to receive the latest blog post around noon every day. We do blog just about every day.

You have Successfully Subscribed!