I wish I could be more strict with myself and only take the amount of money I want to spend with me. If I did, whenever we went shopping or we went out to eat, we’d never overspend. Maybe someday. I’m always afraid of not having enough money or maybe I’ll find something I need (do I ever really need anything? Probably not).
I’ve heard of the envelope system and I’ve even thought about using it. This way we designate what we want to spend on certain things and not anymore. Again, I’m afraid to limit myself so I haven’t done this yet. But perhaps I will, someday.
I was reading Being Frugal is Fabulous one day around the holidays and Nicole was talking about starting to use the envelope system. I asked her if she would do a guest post and share with us how she is doing it and how it’s working.
This is Nicole’s experience with using the Envelope System.
- Household (this is for all money spent at stores such as Target and Walgreens, and it does include some grocery items. I didn’t want to have to separate every transaction, so I left a little extra room in the household budget to include some grocery items.)
- Entertainment (this will be for all family entertainment, including eating out)
- My hubbies fund (this will be money for his lunches and snacks)
This has worked out so wonderfully for us. I have to be selective of what “deals” I decide to buy. Even if things are at rock bottom prices, if I don’t have the money in it for my budget, then I will be out of luck. There are simply no more arguments about going out and doing and buying things. When the money is gone, it is gone.
Do you use the Envelope System? If so let us know how it works for you. Do you do it differently? Have you found it really helps? Or you just can’t seem to get it work for you?
You can read more ideas on becoming Frugal HERE.