Tried a new strategy; results:

[pammy]

Payday before last I wanted to try a new strategy. It used to be so very easy for me to write checks for nonsense stuff. I didn't have the money in hand so I really didn't see it going, ya know? So a few weeks back I decided I was going to try a different route.

What I did instead was figure out all of our bills. When I went to make the deposit I deposited only the amount to cover my bills, the rest I got back in cash. I put up my checkbook, so it wouldn't be easy for me to use it. When I got home I divided up the other things needed and put them into corresponding envelopes. So much for groceries (my monthly goal divided by 2 since dh gets paid every other week), so much for gas (monthly amount divided by 2), handed over the set amount for spending money each and anything left over went into my 'Extra' envelope. When I started it last payday I had $180 in the Extra. Decided that whatever was not spent in the grocery or gas envelopes, come the next payday would be added to the Extra.

So, dh got paid again last Friday and everything started all over. Lo and behold there was still that $180 still sitting in the Extra, along with $2 left over from gas. None from groceries, there was a great store brand sale few weeks back.

I had originally thought to start using that for debt snowball. But rethought this strategy. Right now we are paying everything on time and are doing okay, still able to put quite a bit back in savings. In the next few months will see Christmas and my big property tax bill come due in January. As I just started saving for these things in October the amounts I have saved won't cover these expenses. I don't want to dip into what we are putting into savings, dip into EF, or be late on any bills, so with the Extra I put an extra $100 towards property tax savings and $82 for gift savings. I'll probably be doing the same the next few paydays until holidays are done and property tax is paid (I'm still about $500 short on this one). By next year I should have enough saved throughout the year to cover these, no problem.

So far this is working pretty good for me. The bills are paid and I put up the checkbook. I have an envelope set aside for grocery money and I really watch those prices since I can see the cash leaving. I have an envelope for gas money. Dh and I have pocket spending money for whatever extra. I'm saving for those occasional things that used to eat up my 'extra', like gifts, property taxes, auto repairs, house repairs, etc. Anything left over sits in an envelope and I don't see it. Kinda like opening a present the next payday, you forgot it was there. I didn't need it, everything else was taken care of, ya know?

If there is anyone out there like me that wrote checks pretty easy cause you never saw the money, you might try this strategy, see how it works for you. So far so good from this end, think I will keep with it.

[Mojjo]

I think I need to try this. I need some way to take the spending money out of the checkbook...i tried just withdrawing cash, but maybe i need to withdraw all of it and see how much i can keep.

[sanderson76]

Thats great. I know I have been taking out only what I expect to spend and that is it...it has really helped me. What I have left over after groceries and extra I deposit back into my account so I won't spend the cash.

[Scattymum]

Good Idea! Glad its working out for you.

[canadian gardener]

way to go Pammyboat, that sounds terrific!!!! Thanks for sharing the details as I think you are definitely onto something there!!!

[tightwadmommy]

Sounds like a great plan! Think I'll try it. DH gets paid tomorrow, I'm going to figure out how much cash I need to keep out.

[Mom23boys]

WTG! I am glad that it is working well for you!

[nodmicks]

Great idea!!!!

[mom2matty]

WTG!!

[forestdale]

pammy, I did that when I started being frugal. I used my debit card to pay for many things and didn't really see that as money being spent. I started my envelopes, and as I could see the money, it meant more to me when I was spending it. It's a great system.

[PrairieRose]

Dave Ramsey would be sooo proud of you

[pkellyc]

I pay cash for just about everything pammy. I learned years ago that I have much better control by doing my finances this way. The only things that get paid out of my checkbook are my monthly bills. My savings rarely are touched except for emergencies or planned expenses. Like you by paying cash, I have what I call a secret stash which is nothing but leftover money from the week. I use this money for unexpected needs or even wants. I have no cc debt and I have a good control with them, checks were a little harder for me. I would save whatever cash I had on hand just in case I needed it, and would write checks for everything never paying attention to how many I wrote or what was spent. I think people need to figure out what works best for them and I am glad that you have found your niche.

P.S. pammyboat I happen to be a pammysue

[Minner77]

Congratulations, Pammy!

You figured out a system that works extremely well -- especially for you! :kcrown

WTG in particular, I think, on the "Extra" $$. My DH and I are incredibly boring with money: we consider savings an expense right up there with any other bill. As the old adage goes, if you never see it, you're never tempted to spend it. Works great for us.

Keep up the good work, and let us know if you make any modifications that help even more!

Blessings,
Mary

[sarahsmile]

im going to start doing this on fri when i deposit my check! keep just enough for the bill in the checking acct and take out the rest. ive been wanting to try this for a while, and this story inspired me!

[cau]

I have been doing this & it works. I also stopped carrying my checkbook & charges with me. I make it a little harder to get at so I have to stop & think if I really want it. I also don't have a debit card or anything to get cash withdrawals. Again it makes it just a little inconvient to get at. cau