Time for a new challenge, and a well-timed one on the run up to the Christmas season. Cash envelopes and a budget.
Update – except I decided I would rather do this in January, which is a more standard month.
I recently received an update from McKenzy at Adoptingalifestyle.com. She serves families by helping them to plan and create their ideal financial situation and she has some great ideas.
I have heard about the envelope system before but thought it was probably more for younger people who do not have a handle on their finances. Until I released my ego and owned up to the fact that I do not have that great of a handle on my finances.
For me I spend plastic way easier than I spend cash. And I am a spender.
So I am going to give this a try. Especially for groceries. I find food is my biggest spend, after school fees and bond repayments. While the latter two are fixed expenses, food is not, and I always seem to go over budget.
The trick is to be mindful of spending, which I am not when spending plastic. I have found that if I stop and consider what I am about to spend, I frequently do not spend at all.
So as the year speeds up I shall be endeavouring to slow down on rash spending habits.
In November I cancelled recurring expenses on my credit card, so I am no longer increasing my credit card debt. As soon as it is paid off I will not be using it again. I am not a savvy credit card user, so I do not enjoy any of the benefits of paying with credit.