Envelope System - It's great!

Have I told you how much I love the envelope system? We just started using it, and so far, so good. It was a little scary taking cash to the grocery store though. What if we went over? We didn't. We spent less than we normally would have because we brought cash.

This is our first venture using the envelope system, and I can already tell it will be hit! While we worked to get out of debt this past year we basically followed Dave's guidelines, but we didn't follow everything and the envelope system was one of the things we didn't do. I'm also going to confess something else. Not only did we not do the envelope system, but we also did not balance our checkbook. Crazy! I know! Gearing up for this class, I realized that to be a good example I would have to start doing this again. So last week I did it. Oh my! It was so easy and such a relief to know EXACTLY how much we had in the bank after checks and debits cleared. Why didn't we do this before?

Our cash envelopes are as follow:
Grocery
Blow Money
Gifts
Clothing

So we only have four right now, and other than a hair care envelope I don't see us using more than 4 or 5.

We'll go over all this in class, I'm sure, so if you are wondering what the heck I'm talking about, don't worry.

But if you already currently use the envelope system, feel free to comment on it!

Have a great day!

-The Debtoneufer -