A lot of people claim that you spend less when you only use cash, including bloggers I admire like Crystal of Money Saving Mom. Four years ago, my husband and I attempted the shortest-lived all-cash experiment ever, and I gave up on an all-cash system for us. After all, we do just fine without it – we are still very conscientious about our spending, save money every month, and maximize our credit card rewards.
But yesterday, Josie at Southern Cali Saver wrote about how the envelope system works for her. With the envelope system, each envelope holds the cash for a category in your budget.
It got me thinking about trying a modified “some-cash” spending experiment – maybe just for the categories where I could use a little more discipline, like the groceries and stockpiling. I tend to just grab the good deals when I see them, without worrying about whether I’m overspending for the month (on the theory that it all evens out). But maybe if I were more conscious of exactly how much I’m spending, I could save enough money to make the effort worthwhile.
I’m going to have to put some thought into this – I don’t really know which categories I would switch to cash, and it’s been so long since I’ve had a formal budget that I’m not sure how much to budget pet category. But it’s definitely something I’m going to think about and revisit in the next few weeks.
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