Tomorrow is my last class of the Dave Ramsey Financial Peace University and I have learned so much.
The best thing I learned though was the budgeting basics and the envelope system. When you use cash you have more feelings attached to it then when you swipe a card. Sometimes you might now even know how much you have spent until you look at your bank and/or credit statement. Before you know, you spent $100 on coffee, $50 on eating out, and $300 on entertainment. Did you mean to spend that much? Probably not, but with such good sales and “emergencies” swiping the card seemed like a great idea.
Take a look at your budget and look how much you spend on each category in a given month. Then put that much cash in an envelope for that category. For instance, I spend about $30 or less at the drug stores each month. I put $30 in an envelope at the beginning of the month. When the money is gone, it is gone! It makes me look at what I buy more often. Sometimes a deal, even a great deal, is not worth it if you are watching how much you are spending. It makes couponing even more important as you want to get the most out of your money. You don’t want to part with the money in your wallet.
If you spend less than you budgeted for the month, you can lower the amount next month, roll it over to the next month, or set your savings, and save for an awesome Disney trip.
Try the envelope system today!