Happy New Year Everybody! My family and I are putting our Cost Effective foot forward this year and moving into the hardcore “Envelope System.” Many of you may know of Dave Ramsey and are familiar with this system. Often times we make excuses about being too strict with our money. I know that doing something so “final” isn’t always appealing but I also know that this method has been proven to work! We did a trial run for 2 months (November and December) and it really made a huge difference during the time of year most of us lose track of our money. We are HUGE Dave fans, so we have been doing our budget (most months), but what was different about this time around was actually putting the money into the envelopes and dragging them with us everywhere we went. I thought having the dollar amount in my head was good enough, but when you physically have to say “no” to yourself in the middle of Costco because you cannot buy everything on your list – it really challenges you.
Being cost-effective isn’t just saving money. It’s about making the money you have work the hardest for YOU!
I am not going to re-create a plan that is already working for thousands of people, so I will share with you where to find it.
At the bottom of this post is a link to the budget form we use each month. On it you will see pictures of envelopes where it is recommended that you bring cash with you from an envelope with that title on it. When we head to the grocery store, we need to bring our FOOD envelope. This budgeting form is to be filled out once a month to manage that month’s money. It’s amazing how much harder each dollar works when it is pre-assigned to a task. Christmas shopping was much more fun when we used money allocated specifically for that!
Using real cash makes you think more about your purchases than using a debit card. I’m not sure why, but you can feel it.
My family has very specific financial goals for this year, and I know that doing a monthly budget is the best way to “tell our money what to do instead of wondering where it went” as Dave Ramsey would say. I would love to get feedback on what your plans are for the New Year in regards to your spending habits. How do you plan to be intentionally Cost Effective?
Dave’s Budgeting Forms