Cash envelopes

2

Comments

  • Im switching to cash (not necessarily envelopes, but a jar) for everything but bills DD after watching Dave Ramsey explanation on money. I highly recommend this video. its an eye opener search for "how cash changes the way you look at money" in youtube :D
    TOTAL DEBT JUNE 2019: £38,233.87 Aiming debt free mid 2023. All bad debt written off / paid by January 2023. No missed payments in 2023. Only one active credit card to pay off! I DID IT 🎉
  • onwards&upwards
    onwards&upwards Posts: 3,423 Forumite
    First Anniversary Name Dropper First Post
    One downside of keeping pots of cash is that you can lose out on interest.

    For example nationwide have a current account that pays 5% on up to 2500 for the first year. If you fill it to the limit that’s over £10 a month coming in. In a jar your cash just devalues.
  • sheepy21
    sheepy21 Posts: 221 Forumite
    I was doing cash in labelled envelopes and did like it, we’ve since got monzo accounts though which I love. The app is great and a digital version of what I was doing before
  • karenccs67
    karenccs67 Posts: 1,080 Forumite
    First Anniversary First Post Debt-free and Proud!
    Im switching to cash (not necessarily envelopes, but a jar) for everything but bills DD after watching Dave Ramsey explanation on money. I highly recommend this video. its an eye opener search for "how cash changes the way you look at money" in youtube :D


    I follow the Dave Ramsey baby steps too. I use cash for food & leisure spending, all bills and petrol are paid by direct debits and debit card. I withdraw cash weekly so not much cash in the house
    ***Dont save what is left after spending, spend what is left after saving***
  • Hi everyone,
    I cannot recommend the cash envelope system highly enough.

    Now in my sixties, I feel I am finally in control of my finances thanks to MSE and completing a CAP (Christians Against Poverty) course which encourages this system.

    I look forward to filling the envelopes at the beginning of every month and knowing the money is there for something like a haircut at the end of the month is empowering.
    Using actual cash is real.
    It might not be for everyone but give it a go!
  • Hi everyone,
    I cannot recommend the cash envelope system highly enough.
    Now in my sixties, I feel I am finally in control of my finances thanks to MSE and completing a CAP (Christians Against Poverty) course which encourages this system.
    I look forward to filling my envelopes at the beginning of the month and knowing the money is there for something like a haircut at the end of the month is empowering.
    Using actual cash is real.
    It might not be for everyone but give it a go!
  • d_rok69
    d_rok69 Posts: 63 Forumite
    First Anniversary Combo Breaker
    I use cash envelopes I developed a gambling issue and ran up debt so was looking for ways to try and over come that. I came across Dave Ramsay and his total money makeover book and it really helped.

    I now make a monthly budget, first thing I do is pay all my bills online then I life whatever money I have left and use a cash envelope system.

    I see loads of people here saying they do it all online which is fine for some but doesn’t work for me as if I leave my money in the bank I may gamble online and the second reason is I am a serial swiped and used my card for everything from polo mints to bus trips and I easily lost track of what I was spending. If you use physical money you not only keep a better track of money but it also causes pain to part with physical money which stops me buying so much rubbish
  • tealady
    tealady Posts: 3,742 Forumite
    Name Dropper First Post First Anniversary Mortgage-free Glee!
    I take out cash weekly for shopping.
    What I do is divide my monthly shopping budget by 5 rounded down to the nearest tenner.
    Then I take this out on the same day each week.
    That mean's 8 months of the year I have an extra weeks money in hand.
    I used to use that extra for either downpaying my mortgage or to stock up on essentials.
    However as others have said you just have to find a system that suits you.
    Find out who you are and do that on purpose (thanks to Owain Wyn Jones quoting Dolly Parton)
  • savingholmes
    savingholmes Posts: 27,323 Forumite
    Name Dropper First Anniversary Photogenic First Post
    I am using the R@msey baby steps as a guide too. I have in the last 4-6 weeks started to move towards using cash - I am spending a lot less on food than I was. Still a way to go.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.7K on 0% spends card but offset by £34K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • [Deleted User]
    [Deleted User] Posts: 7,175 Forumite
    Name Dropper First Anniversary Photogenic First Post
    I don't keep cash in the house apart from maybe the odd £10 note in my wallet. My wages go into my bank account and I pay all bills online and I make most of my purchases with debit card. Just no reason to carry money around. Also too many shop assistants can't count these days so far too often you end up getting short changed, using a debit card eliminates this.
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