$$$$ and the New Year : Part 2

Hopefully you were inspired to sit down and work out your budget.  If you've done it, GREAT!  If not, then please take the time to do so, it makes all the difference in being successful or unsuccessful financially.

This next post is probably the most difficult, yet the most rewarding.  Using cash.  I'm the first to admit that we are NOT perfect at this system, but each month that we use cash, we are definitely more in control of our finances.  There are no surprises when we look at our bank accounts, we thing twice before we buy something, and we count the cost.

Dave Ramsey advocates the "envelope system."  Again, I took his general idea and modified it for what works for us.  It makes me nervous to have 6-8 free floating envelopes in my diaper bag, so I found a coupon organizer that works very well for me.  Here's how you do it....

MY COUPON ORGANIZER TURNED CASH DISPENSER

1.  Look at your budget and put a star next to each category that you would be able to use cash for.  For us we do cash for groceries, entertainment, eating out, gifts, clothing, miscellaneous, blow $, car repairs, and home repairs.  We don't do cash for gas or our charitable giving.  I don't want to unload my 3 kids from our van and lug them into the gas station just so I can pay with cash, so using my debit card at the pump works the best, and we use checks for our charitable giving for tax purposes.

2.  Pull out cash for those categories.  You may choose to pull it out for the entire month, or pull it out for two weeks and at the end of two weeks, pull out the rest of the cash.

3.  Organize it.  Put your cash in the appropriate sections.

NOT A GREAT LOOK AT IT, BUT YOU GET THE IDEA.  LEXI LOOKS SUPER EXCITED ABOUT IT :)

4.  Spend it!  That's what it's there for!

THAT'S RIGHT!  I'M A BIG ROLLER!

I'm not going to get into the common sense of blowing through your cash and then using your debit card or credit card.  That is not going to help you financially. This system only works if you work it.  Discipline, discipline, discipline!

I know there are some great little accordion file folders that some of my friends have used for their cash.  You find these organizers at most office supply stores.  Let me know of any other cash ideas you have, and have worked for you.

Happy spending and saving!!!  Part 3 will be posted later this week, so stay tuned!

~Emily