Anybody managing cash without using envelopes?

**PoorRichardsGirl** · 06-26-2007, 02:57 PM

Hi - I'm looking to simplify things, and one thing I want to try is using cash instead of debit and credit cards.

Mostly when I read about this, people talk about the Envelope System that Dave Ramsey suggests. I've tried that, but to me it's a PITA to use, just as bad as remembering to record all my debit transactions in Quicken. It's especially hard when you're shopping someplace like Wal-Mart, where you're shopping for a lot of different categories on one trip.

Here's my current idea--I take out the same amount of money each week to cover everything I'd pay cash for. Food, postage, gas, garden stuff, small clothes items like nylons, meals out, books. If it's the week to spend $63 at the vet's for the dog's prescription and special food, or we've run out of a lot of grocery items at once, maybe I won't be buying plants that week. If we don't need to spend much on necessities one week, I'll spend more on extras. Maybe I'll keep some leftover cash in a drawer, so I'm ready for a really high-demand week. No worrying about envelope or Quicken categories, or whether I've misplaced a debit receipt.

Has anyone else has been successful doing things this way? See any pitfalls? I'm out of debt now, and want to stay that way. I'm just tired of all the tedious record-keeping I've been doing, and want to get on with other things in life.

TIA!

**ktsmama** · 06-26-2007, 03:28 PM

Tia,

I have a system pretty much like the one you are thinking about using. It has worked pretty good for me. Once the cash is gone, it's gone.

**zakity** · 06-26-2007, 03:50 PM

We have it broken down into a few categories:

bills - I don't have a set amount for this one, but I do have an amount that the bills usually are. I put down that set amount and then change it when the real bill comes in.

groceries (includes pet food, cleaners, and the like) - $400

misc - $400

eating out - $100

dh's lunch (since the poophead has decided to choose to eat out for lunch every day) - $100

gas (for the vehicles) - $300

I use an excel spreadsheet to keep track of what we spent.

**bumplett** · 06-26-2007, 04:08 PM

I take out $x each pay period (1st & 15th)

when it's gone, it's gone.

I have the basic envelope system, but I agree, it's a PITA!

It's not that I didn't try, but if I run out of "pet" money, but have plenty of "gas" money, the dogs still have to eat -

so - the cash works for me, if I run out - I'm out - period.

**cheappearls** · 06-26-2007, 04:32 PM

We do that. We have a set amount of "extra money" and once it's gone, then that's it.

If it works for you then it's a good idea.

**Dancing Lotus** · 06-26-2007, 04:37 PM

I take out two hundred cash on pay day and thats it. When its gone its gone no matter what I spent it on.

**pammy** · 06-26-2007, 05:04 PM

I include groceries, toiletries, other things from Walmart (or the like), pet stuff all in one category. Was tired of trying to figure out which envelope went for what or I may have bought some toiletries on sale at the grocery store and couldn't figure out which envelope to pay from. PITA to keep it seperate at the checkout and I was tired of moving money to and from envelopes. Since combining them it's worked really well for us. Whatever works for you, chickie!!

**Its_Donna** · 06-26-2007, 06:01 PM

My envelope system is very easy - 3 envelopes and a Coffee Can:

1. Grocery (Includes HBA, Pets, Cleaning Supplies, etc)
2. Entertainment (for eating out, movie rentals, bowling, etc)
3. Allowance (weekly stipend for each of us)
Once the cash is gone...it's gone.

A Coffee Can for the Emergencies that may crop up around here from paycheck to paycheck. If the coffee can gets a couple hundred bucks in it...I take it to the bank and add to the Big EF.

**Jilse** · 06-26-2007, 06:15 PM

What I do is take hubby's paycheck and subtract all the bills from it. Whatever is left I split into two catagories: 1) Gas 2) Food & extras. When the money is gone then it's gone. I write the amounts down on a white board next to the front door so I can easily see how much money is available before we go out anywhere. I like it staring me in the eye so I know that we only have x amount to spend so I can't just go crazy and blow everything we have. So far it's worked well. But I am only really one month into it.

**deadmort616** · 06-26-2007, 10:48 PM

i used envelopes. Then i axadently threw away 100.00.

**IntlMom** · 06-26-2007, 11:10 PM

Originally Posted by deadmort616

i used envelopes. Then i axadently threw away 100.00.

Ouch!! That had to hurt!!

**Libby** · 07-03-2007, 08:02 AM

I tried to use envelopes for a while. When I was a young teen just starting to babysit my bro used to come raid it for his pleasure and I would always have nothing

Evil bro!

Then I tried it again about a year ago, its truly a PITA however I wouldnt write down or correct the amounts on the envelope - wouldnt track it well enough so I knew what I had. I either didnt have the money or I had way more then I thought!

So now, off of each pay: a contribution to my RRSP comes right off from work which I dont even see/miss, I set aside money for any bills that are coming up between this pay day and the next, one credit card payment regardless of balance, gas & groceries are alloted for and fun money is withdrawn - about $100 for the 2 wk's (includes eating out/date money)

I keep track of my money in a 365 day/yr page by page journal. This way I can always flip back to see what got paid, how much, confirm # and on which day. Once I put that book away, I cant touch my bank account. My bills are paid, money put aside for gas and fun and thats it. Whatevers left in my account stays! (money for gas & groceries to be paid via debit card)

End of story. If its gone, its gone. Hehehe, this is why I try to plan excessively frugal dates with the bf. Its hard, but we're both used to it now. We'd rather have the money going to our debt and necessities vs junk we dont need or really want.

**Southernmama** · 07-03-2007, 08:38 AM

Right now I've just begun a budget. I subtract all the bills from the check and then I allow $275/mth for groceries and the misc you can get at the grocery. Then I allow $150 for gas including dh's misc a month. Then I have $30 of spending on my stuff a month. Then what's left over I ignore. Don't ever touch it again..it just adds to our balance and hopefully we'll have a secret savings stash. So each check I only subtract bills from the paycheck NOT our balance. Otherwise I'd have impulse buying.

**PoorRichardsGirl** · 07-03-2007, 09:33 AM

Wow, lots of good ideas. And it does give me hope that other people are managing to eke cash out for a week or two, without messing with the envelopes. Thanks everyone for replying.

I wouldn't call this past week a disaster, but the $140 I originally took out went very quickly! I had to use the debit card and get some additional cash out. It was kind of a weird week--we were on vacation, getting take-out more than usual, using more gas, and we seem to be running out of oddball stuff all at once. I guess it will take some time to figure out what an average week is like.

**Emjo** · 07-03-2007, 06:57 PM

Here's what we do:

Tithing and rent are paid by cheque. Utilities, insurance, and student loan payment are auto-withdrawal from our bank account. DH uses the debit card to buy gas, as we can't really be "frugal" with this (DH uses our car to drive from job site to job site). EVERYTHING else is paid in cash. We take out $120 (that's for 2 adults, and 1 toddler) every Thursday, and I go grocery shopping on Thursday night. Whatever is left over is for odds and ends at Wal Mart, or maybe fast food for lunch, etc. I always make sure I buy the essentials before we spend any of the money on extras.