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Old 03-21-2013, 09:29 AM   #19
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Join Date: May 2010
Location: South Carolina
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Re: Question about using cash?

I am a SAHM of 2, expecting #3. Dh is a 5th year teacher is SC, he nets about $2100 a month, so I have to budget well. We took the Financial Peace course by Dave Ramsey. We created a budget and use the envelope system now. Before we did this I always worried ab the money and there was NEVER any left over when it was time for a new paycheck. We lived paycheck to paycheck and used CC's.

Now that we use the envelope system, I typically don't worry about money.....only occassionally and it's usually the food budget, but this is also bc we have recently made the switch to whole foods which are more expensive. I can't describe how freeing it is to be able to buy clothes(or whatever) and not put it on the cc, bc it's in the budget and the money is in it's own envelope. If/when a category runs out of money, I wait until the next paycheck when there's money again.

We have paid off all of our cc debt and now looking back, I realize they were a huge part of the problem. It was a cycle of buy it now, pay it off with the next paycheck, now I have no money left to buy this thing this month bc of paying off the cc, so I put it on the cc, cycle repeat.

I do keep all bill money and gas money in the bank and pay online or use debit at the pump....I don't want to haul my kids inthe gas station. But I do allot a certain amount and not go over. We also now put money in savings every month, we never did that before. I occassionally order online, but only if that envelope has money in it. I put it on the cc and take the money out of the envelope to be re-deposited and I pay it off as soon I I put it in the bank. I don't order it if there isn't money to cover it and I don't wait until the next paycheck, or even for the bill to come in, to pay it.

It took a few months to get used too, but I am so glad that I made the switch. I finally understand why the course is called Financial Peace. When you "feel" the cash leave, it makes you think about whether or not it's worth it. It will change your mindset forever!
Ashley enjoying life with my husband and best friend Ross . SAHM to Sterling(7), Evie(4) and Abel(1). Life is GREAT!
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