We just had a money matters lesson in one of our Sunday school classes yesterday. They suggested the classic envelope technique where you divvy up the months income into your expected expenditures. You are apt to spend less when you actually have to see the cash leave your hands.
That's smart and all but I would be terrified to loose my envelopes or get my purse stolen. Cash is cash and when it's gone it's gone.
I'm a partial to credit cards myself. We pretty much use our card for everything. We're still smart and pay it off every week thus avoiding interest and late payments, and it doesn't hurt that we get reward points with our visa either! If you loose your card or if someone steals your number, you can call in for a replacement or sign an affidavit for the fraudulent charges. But I must admit, it IS easy to get carried away with a credit card. (the whole "have now and pay later" mantra)
So I got to thinking... I want to actually try living by a budget (vs. just drawing one up and glancing at it from time to time) but still have the security of a credit card, and then it hit me:
Keep the envelope idea, but instead of putting cash in them, put a 3x5 card in them with the designated amount on top. Throughout the month you can subtract amounts spent from the remaining total, and still use your credit card to make the purchases.
This plan still requires more effort and will power than the cash technique, but it's a great tool to keep track of your budget better.
that's a wrap folks. I hope this suggestion helps!
2 comments:
That is a great idea. I keep thinking I should try out the envelope thing, because I stink at budgeting, but the card thing might work for me.
I heard about the debate going on yesterday in class. I'm kind of sorry I missed it. It sounds like it might have given me a good laugh!
Love it...as you know I'm all about the credit card, rewards, and of course paying it off. I'm not a cash person. :)
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