More Dave Ramsey cash budget questions

[Moxie]

We have a checking account where we put a little each month to cover our big quarterly and annual bills; auto ins., car licenses, Christmas, etc. That works well for us. Now I'm wondering about tightening up other areas. I get all of our grocery money in cash twice a month. The problem is that the lion share of it doesn't go to food:glare:. Since most of my shopping is done at Wal-Mart, if I need mascara, the kids need socks, all cleaning supplies, etc. come out of the grocery cash. As a result I end up using the debit card at the end of the 2 week cycle:banghead:.

 

Should I up the grocery envelope and just call it my Wal-Mart envelope? Should I have a seperate catagory for clothing, cleaning, etc.? What cash envelopes do you use?

[Punks in Ontario]

I've started using a multi column printed spreadsheet with each category having a column. Then I total the amount in each category from Walmart/Costco and subtract that from the totals on the spreadsheet. I have columns for groceries, fuel, clothing, medicine, gifts etc. I found keeping the envelopes straight too confusing. Then I just use my debit card.

 

I can check to see how much is available in each column when I shop and try to keep within these amounts. I don't always do as well as I could,:confused: but it does keep me more or less in line.

 

I wish I could draw you a picture. This spreadsheet is like a checkbook register except for the extra columns.

 

Hope you get something figured out!

 

Karen

four boys (12, 11, 6, 5) and a girl (22)

[Ria]

We use budgeting software (YNAB Pro, http://www.youneedabudget.com/ ) that allows us to easily create different categories. We don't do the envelope system; we use our credit card within our alloted budget and pay it off each month..you could do the same thing with a debit card, though. I've found this system to be much easier than trying to do everything by hand or on Excel.

 

Ria

[partyof5]

This budgeting thing is tough! We're facing the same challenges and are new to the DR plan ourselves. Here's what we do:

 

Groceries in an evelope: Cash. Food ONLY. No exceptions.

 

Gas: No envelope, just debit. Only Debit. Keep receipt and track at home.

 

As for your Walmart expenses, this is where we went cold turkey. Just stop this kind of spending unless budgeted. To transition to this, we began a Walmart envelope with say $25 cash that would inclue health & beauty stuff, paper goods, and other incidentals at Walmart.

 

Clothing for kids and adults is budgeted. Put cash in an envelope each month for this, and even if it is not used up, you'll have it next month when you need new socks or sneakers or something that is hard to anticipate months in advance.

 

This system required our planning and our self discipline but it has been worth it. We have done a 180 on our spending and planning and I would never go back.

 

The only rule is NEVER touch one envelope for something other than what its allocated. Never. :) It will work but it's only as good as the one holding the envelope. ;) Hope that doesn't sound too harsh, but I think it's the kind of harshness I needed to make it work in our house.

 

All the best,

[Plaid Dad]

We use our debit card for almost everything but use Budget as our financial software. It uses a "virtual envelope" system so you can allot money for different purposes easily. I'm not sure what Dave Ramsey says about this product, but it is helping me get a much clearer view of our finances, and we are on track with our debt repayment. :)

[Julie in Austin]

We use our debit card for almost everything but use Budget as our financial software. It uses a "virtual envelope" system so you can allot money for different purposes easily. I'm not sure what Dave Ramsey says about this product, but it is helping me get a much clearer view of our finances, and we are on track with our debt repayment. :)

 

:iagree:

 

We just started using Budget and I really like it!

[LoriM]

I started making a list of things I wanted to buy from Wal-Mart (or anywhere else) that are non-food. I put a date beside it, and then wait 30 days to buy it, after it has been added to the budget.

 

We do have a separate envelope for clothing and one for toiletries. I feel free to spend in those envelopes as needed. "Groceries" is food and food-supplies (napkins, paper towels, etc.) only.

 

One thing that helped is that I started shopping only in a grocery store for groceries. I don't even go to Wal-Mart unless I'm shopping for non-food items. I don't have the self-discipline to stay on the grocery side of the store, and I spend less if I go to the grocery store. :)

[Sue G in PA]

We had the same problem when we first started the DR cash envelope system. Since I shopped frequently at Target and would buy food as well as other non-food items in one purchase, we had to budget those things together. So, for instance, our "food" envelope is actually the Food, diapers, household items, cleaning supplies, paper products, cosmetics, personal care, etc. envelope. I know many of you frown at that being too "general", but it works for us. I just makes sure we budget enough every 2 weeks if I know I'll need diapers or more household items. I also do a ton of shopping at CVS using the Extra Care Buck system so many of my cosmetic, cleaning supply, paper products, etc. items are free with the Extra Buck coupons or very, very cheap. If you want to know more about CVS shopping, check out http://www.hotcouponworld.com or http://www.iheartcvs.com. Both are very good sites for using the CVS "system". We do have a separate envelope for clothing, gifts, entertainments, etc. and if I buy clothes along with food at Target, I just "square up" at the end. Put money from clothes back into food, etc. for whatever I purchased. Does that make sense?