Friday, October 2, 2009

BUDGETING - Envelop System/Cash System

During college, I used the envelop system. The idea of doing it again didn't really appeal to me ....until after the Grocery Challenge.

I started again and here goes:
Food (incl paper products, cleaning, alcohol, eating out-convenience) $81
Upkeep (house expense - paint and light bulbs) $10
Gifting ($20)
Major upgrade/maintenance $38
Gas - (incl vacation gas expense) $30
Childcare (incl babysitter, preschool, after school activities, camp) $92
Fun (incl waterparks, out to eat -sit down, vacation) $57
Clothes $27

I have broken down the number of twenties, tens, fives, and singles that are needed and place them in an envelope with the receipts.

I'm on week #2. Last week went well. Had about $25 leftover from groceries plus $25 in mail in rebate--Fetzer. This week, I'm ok. Did another $25 mail in rebate for Sterling and was kind of stressed out about the amount of cash remaining for the weekend.

There was a study that shows that amount of pain a person goes through when they have to pay cash vs credit card, vs express swipe (BP Amoco). How does it work when I go to the gas station? I go to the register, give them my cash and pump my gas.

Please let me know if you are on a cash system.


  1. Good for you, switching to envelopes. I'll be interested to hear how it effects things for you. Me? I use mostly credit cards for the convenience (and then pay them off every month). I do wonder if I would be slower to spend if I did all transactions in cash. And it does seem kind of funny to charge the tiny amounts I end up with at the grocery store a lot of times - if it's under a dollar I always pay cash.
    : ) Lara

  2. The limitation on the envelope system is: stockpiling. For example, this week buy 2 Folgers canisters and 1 Pillsbury brownie mix and oop $12.?? with a $5 catalina. Essentially the Folgers costs $3.50 which it usually costs at Walmart $6-$8. We LOVE coffee. I've tried buying it through a coffee wholesaler and brought the price to $5/lb (80 lbs). I was able to get 4 canisters. However, I wanted to get 10.

    I did get the Pillsbury flour 7 (5 lb bags) oop $17.50 with $5 back or $1.78/bag. I would have been happier if I found the price at $1.50 x 7 = $10.50 and $5 back or .78/bag. I went to 2 stores and they must have raised the price. Next week, I will get the sandwich baggies at Aldi's and premix muffin mixes, pancake mixes, cake mixes, premeasure bread. I like to have all dry products sealed and ready to use.

    And today is Wednesday and have $13 (+$5 cat)left plus $22 from last week and I'm waiting on $50 from MIR. And I need some money for the weekend. (I have stockpiled some Panera Bread gift cards (if necessary). Rec'd a $20 gift card for Target as a thank you. I maybe able to capture some of the Target deals this week

    Note: I have purchased several gift cards at a discount $20 for a $25 Panera card.

  3. If you ever find the following on sale let me know:
    dark chocolate
    maple syrup (real)
    goat cheese
    feta cheese
    blue cheese
    parmesan cheese (hard cheese)
    Johnsonville brats (<= $2/pkg)