Join Date: Dec 2005
Location: Brisbane, Queensland, Australia
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I've been using the cash system for 15 years and it's been a life-saver. I had no idea there was a system called the envelope system, but that's the way I've run my home for most of my kids' lives. I take out cash for food, gas, kid allowance, school lunches, incidental expenses (going out to dinner, take-out pizza, haircuts, new water filter, stamps, whatever - it's only $200 a month).
Everything else gets automatically deducted (charities) or paid by check (rent, electric, phone). Non-monthly expenses (like clothes, doctor visits, car repairs and insurance) are averaged per month and that amount goes into a separate account. That way I don't think I "have" that extra amount to spend.
My husband, who can't take care of one dime, believes we never would have gotten out of debt if I hadn't been so strict with this method. It was the only way we could separate out any money to pay debt. I got out of $15,000 credit card debt (from when I was a single mom and not getting support) and I also got rid of my husband's $8500 credit card debt. It's great to see folks using cash instead of plastic to live.
American in Australia; fiber artist; craft blogger; 2 grown kids; Aspergers