If you pay cash for monthly expenses, how do you divide it up?

[Guest Cindie2dds]

Alas, I have realized that plastic doesn't work for me.

 

I've got 6 cash categories even if it's only $5:

 

Groceries (including toiletries/food/sundries)

Home (repairs, basic yard stuff)

Entertainment/books (eating out, movies -- yeah, right; etc.)

Clothing

Gas

Personal

 

I thought this would be my everyday cash and then I could have my bills debited out of my account. I don't think I could handle anymore categories than this right away.

 

How do you divide it up?

 

Thanks!

[MountainViewMama]

I have wondered this as well so I am looking forward to reading the responses. Sorry I can't help but hopefully someone else out there will share? :)

[Guest Cindie2dds]

Thanks, Jen, this allows me to respond and shamelessly bump. ;)

[Jean in Newcastle]

I don't do an envelope system but I have done a budget, which is essentially what this is.

 

You divvy up the non-negotiables first - so first the available money goes to your debited bills (you estimate those bills that don't stay the same each time). Then of those envelopes you mentioned, you need to prioritize. Groceries, gas and home need to go first. Then clothing would be next. Then entertainment and personal out of what monies would be left.

[Sputterduck]

Savings first. Always saving first.

[Sue G in PA]

We use cash envelopes for the following categories:

 

Food/Home (to include food, diapers, cleaning supplies, eating out, lunch money, etc.)

 

Gas (we also put aside some money each pay for Car Repairs which we keep in a separate envelope at home)

 

Clothing (to include shoes, kids and adults clothing)

 

Gifts (for birthdays, Christmas, weddings, baby showers, etc.)

 

Entertainment (movies, date nights...HAH!)

 

"Blow Money" ($10 each for dh and myself each pay to use for whatever WE want!)

 

Kids Allowances (they each get a set allowance every pay)

 

We also save every pay (of course) even if it is only $10. Money kept in the acct. is also budgeted tightly and used for medical expenses like Rx, dr. visits, etc., school supplies/homeschool books, etc. and any other bills that are automatically withdrawn every month or that we write checks for (mortgage, what is left of CC bills, pers. loan, car payments, electric, phone, cable, etc.). We have quite a system down (ala Dave Ramsey) and every penny is accounted for. We sometimes have leftover money when dh gets a reimbursement for his travel for work and that is either saved, put toward Christmas or Home Improvement...wherever it is needed at the moment :D I never thought I would love using cash, but I do. Even for gas. I usually send dd in to pay for the gas (she loves the responsibility). Anyway, more than you asked for, but this is what we do. Oh, and we have a mtg. every month to see if any expenses need to be "tweaked" or increased/decreased or cut out completely (some months we go w/out entertainment or blow money).

[MamaofTwo]

I take cash out for groceries, personal spending (clothes, hair, eating out, coffee with friends, books that aren't required for school, etc.), and spending for the kids (clothes, shoes, skating, whatever...). Once it's gone, it's gone.

 

It forces me to budget for what I really need and if there is anything left at the end of the pay period I either put it aside for a rainy day or go buy something that I had been putting off.

 

We have a budget to cover bills and savings. Taking the cash helps me to stay within budget.

[Guest Cindie2dds]

We have a budget to cover bills and savings. Taking the cash helps me to stay within budget.

 

:iagree: I was thinking if I had cash for things other than monthly bills, it would force me to stay on budget.

 

We use cash envelopes for the following categories:

 

Food/Home (to include food, diapers, cleaning supplies, eating out, lunch money, etc.)

 

Gas (we also put aside some money each pay for Car Repairs which we keep in a separate envelope at home)

 

Clothing (to include shoes, kids and adults clothing)

 

Gifts (for birthdays, Christmas, weddings, baby showers, etc.)

 

Entertainment (movies, date nights...HAH!)

 

"Blow Money" ($10 each for dh and myself each pay to use for whatever WE want!)

 

Kids Allowances (they each get a set allowance every pay)

 

We also save every pay (of course) even if it is only $10. Money kept in the acct. is also budgeted tightly and used for medical expenses like Rx, dr. visits, etc., school supplies/homeschool books, etc. and any other bills that are automatically withdrawn every month or that we write checks for (mortgage, what is left of CC bills, pers. loan, car payments, electric, phone, cable, etc.). We have quite a system down (ala Dave Ramsey) and every penny is accounted for. We sometimes have leftover money when dh gets a reimbursement for his travel for work and that is either saved, put toward Christmas or Home Improvement...wherever it is needed at the moment :D I never thought I would love using cash, but I do. Even for gas. I usually send dd in to pay for the gas (she loves the responsibility). Anyway, more than you asked for, but this is what we do. Oh, and we have a mtg. every month to see if any expenses need to be "tweaked" or increased/decreased or cut out completely (some months we go w/out entertainment or blow money).

 

Thanks, I know I can't do cash for gas since I have littles. Going inside to wait in a long line twice isn't an option. I'm very impressed you have every penny accounted for! I think I realize Dave Ramsey's right about the credit cards, even the rewards aren't really rewards if you spend twice as much to get them. ;)

 

Savings first. Always saving first.

 

:iagree: Always great advice. Got that covered first, after tithe. Just need to reign in the other parts consistently.

 

I don't do an envelope system but I have done a budget, which is essentially what this is.

 

You divvy up the non-negotiables first - so first the available money goes to your debited bills (you estimate those bills that don't stay the same each time). Then of those envelopes you mentioned, you need to prioritize. Groceries, gas and home need to go first. Then clothing would be next. Then entertainment and personal out of what monies would be left.

 

Thanks, Jean! This seems like it's doable where I'm at right now. I like after the bills, prioritizing the envelopes, too. Clothing is usually left out or at the bottom until you realize nothing fits any of you or your kids... :D

[Jennifer]

Thanks, I know I can't do cash for gas since I have littles. Going inside to wait in a long line twice isn't an option. I'm very impressed you have every penny accounted for! I think I realize Dave Ramsey's right about the credit cards, even the rewards aren't really rewards if you spend twice as much to get them. ;)

 

Where do you get your gas? Can you use cash to purchase a gift card that you can then swipe at the pump? I buy gift cards for Walmart and our local grocery store at church (a Scrip program where the church gets 5% of sales) with cash at the beginning of the month and then use the cards like a credit or debit card. It helps me not to go to an overpriced convenience store if I don't have the cash-I need to wait until I can get to Walmart or King Soopers.

Hope this helps!

Jennifer

[Guest Cindie2dds]

Where do you get your gas? Can you use cash to purchase a gift card that you can then swipe at the pump? I buy gift cards for Walmart and our local grocery store at church (a Scrip program where the church gets 5% of sales) with cash at the beginning of the month and then use the cards like a credit or debit card. It helps me not to go to an overpriced convenience store if I don't have the cash-I need to wait until I can get to Walmart or King Soopers.

Hope this helps!

Jennifer

 

I get my gas at the Pilot, since it's on the way into town and the cheapest. I don't like going in there (or any gas station) because of the sodas and junk, plus there is always a line to pay and to get change after. I never thought of getting a gift card for gas. Wow! Thanks, Jennifer. I was just going to use my debit card, but I probably should just go "cold turkey" with plastic so I don't get myself in a pickle. :tongue_smilie:

[Kimm in WA]

Just a tip - I use a coupon organizer for my different categories. Mine is plastic, not thin cardboard, so it's very durable. It keeps everything together, I can slip receipts into it, and I can easily transfer between categories if, for example, I am at a one-stop store and throw in undies for my daughter and don't want to have to have them rung up separately - I just transfer the $ from the clothing section to the food section where I paid the whole bill out of.

 

HTH,

Kimm

[outtamyshell]

Here are the categories I use...

 

Cash Envelopes

Grocery

Restaurants

Adult Clothes

Children's Clothes

Toiletries

Hair Care

Adult Education/Tutoring

Entertainment

Allowance

 

Checking Account

These are my regular budget items I pay from my checking account. This is the rest of our regular budget.

Tithing

Fast Offering

Mortgage

Electric

Water

Gas

Phone

Cable

Car Insurance

Student Loan

 

Short Term Savings

These are the categories I have in my saving account. Some items are in my regular budget, and some I only fund from 'bonus' money.

Charity - Other

Savings - Emergency

Savings - College

Savings - Other

Housing - Taxes

Housing - Insurance

Housing - Repairs

Housing - HOA

Utilities - Cell Phone

Transportation - Repairs

Transportation - License/Tax

Transportation - Savings

Medical - Doctors

Medical - Dentist

Medical - Optometrists

Medical - Drugs

Personal - Tuition

Personal - Homeschool

Personal - Piano

Personal - Subscriptions

Personal - Gifts

Personal - Misc

Recreation - Vacation

 

I have a way too complicated spreadsheet that I use to keep track of everything. I'm either right on top of everything or I'm not budgeting at all. I don't know how to do it half-way.

Edited November 13, 2009 by outtamyshell

[Guest Cindie2dds]

Wow, thanks for typing that all up, outtamyshell!

 

When I follow my budget, I should have some extra money for savings. I was debating whether or not to leave that in my checking account. That's probably a dangerous idea. I like the idea of only leaving monthly bills in my checking account and then moving other irregular expenses and savings into a completely different account.

 

I admire the spreadsheet, but if I did that, it would look pretty on my computer and just stay there. I need to have something (like the cash envelopes) simple for daily outflow of money. Again thanks for typing all of those categories out. It give me more things I might need to make room for that I forgot about. :)

[Guest Cindie2dds]

Kimm,

 

I know I need something to keep them in. I'm still debating. I have a plastic one from a few years ago, but I didn't like using it. I need to get the organization thing down first. I found one on Dave Ramsey's site that I think I would actually use; a wallet and envelope system all in one. I want this to stick and be prepared and ready to go.

 

Thanks for the tip!