For months now, the Lord has put on me (us) to revise how we spend money. Constantly, folks would talk about the "envelope system" as presented by Dave Ramsey. It seemed cumbersome, limited and, well, I spend money just fine on my own, thank you very much. There was the problem. I spend money just how I please. We have a monthly budget. Thankfully, our bills are paid in full and on time. We joyfully give back where the Lord directs us. But, each month we seem to be squeeking to the next paycheck. It's not because we have nothing left over after our set amounts are paid. In fact, I am often amazed at how much is left over. Yet, some how that pile of money would evaporate quickly. But, no, I don't need any help here. I'll keep spending money the way we always have been. (You know the definition of insanity is to do the same thing over again and expect a different result!)
I would talk to people about this cash system and what does that Dave Ramsey guy have to say and determine it was just not for me. Well, of course, those folks paid off their debt, they sold their car, or stopped getting weekly pedicures, etc. etc. (i.e. excuse, excuse!). And, we are not big-spending-shoppers, so just what were we supposed to cut, Dave?!? (The Lord did sell our car and we were at least faithful to applying that payment towards our monthly credit card debt.)
I prayed the Lord to change how we were handling our finances. As you know from previous posts we prayed over (and continue to do so) our credit card debt. The Lord has been so incredible in helping us to get rid of it to the point that one is paid and closed already! We were praying, but honestly, my heart had not changed about this whole cash and envelope way of spending money. (Lord, give us a way, but I am not going to listen to the wise counsel that seems to be working for all of these other people!)
Then, my brother-in-law up and gets a job with Dave Ramsey and gives us his first book, Financial Peace.Ugh! Now, I have no excuse but to read the dang thing. And, just like that my heart finally changed! Thank you, Lord!
This week has been week #1 of using cash. While some folks use this system to a very detailed extent - many different envelopes for each line of their budget, we started small. One for groceries and one for "other fun" - eating out, kids play-dates, etc. I went through our bank records to get an estimate of just what we were spending on groceries and then we decided what we are willing to spend on the "other". I also created a one-time "back to school" envelope as I knew we needed one new pair of shoes and I had promised each child a first day of school outfit. So, I took out cash for all of that.
It's only been a week (and I still have to make what I have left in the envelopes last for another week), but I have to tell you...IT WORKS! Since I have a set amount to spend, I have to make a conscience choice on what is a priority. The grocery store is somewhat easy for me. I meal plan and make a list. I spent more than I thought I would, and realize that we may have to adjust that after the first month. It's not that I am blowing money on groceries (8% of our total budget is low), but we may have underestimated just what things cost right now. A friend also advised an "entertaining" envelope as we often have people over for dinner. We'll see how the month as a whole averages out before making a change.
The most encouraging was the "Back to School" envelope. I hope these examples encourage you as I am not sharing to pat myself on the back. I had a budget set for Colin's new shoes. We found ones he liked (on sale with a 20% off code!). The store was having a huge sale on women's and girl's shoes. Normally, I would have cruised through that section looking for myself and Cate (though we had just tried on her shoes and she clearly is not in need). But, I did not because I knew that spending more there, would mean no new first day clothes for them.
When we went clothes shopping it was easy to stick to my guns about what they could get. I knew what I was able to spend, so Cate had the choice of ONE outfit (shorts/shirt or a dress) as did Colin (the dress not being an option). And, let me tell you, there were some CUTE things all under $10. In all honestly, they have so many clothes thanks to their grandmothers that they did not NEED these new things. It was just a fun way to help them get excited about their first day. So...for the first time in my life I paid cash as Target! It was awesome! I even had a few bucks left over and bought a little something to send to my niece. It was such a cool feeling! I have no doubt that two weeks ago, I would have spent double.
Here is another example: in the "other fun" envelope we intended that money to be used for eating out and any play-date expenses. This week, I had an opportunity to have dinner/drinks with a friend. We also have set plans with a group to go to the baseball game this coming Sunday evening. In all, each would cost about the same amount. Two weeks ago, I would have done both. I would have whipped out the debit card at the friend dinner without a second thought. I had to look at what was left in the envelope and see that we could not do both. I feared I would be resentful about having to make a choice, but I did not at all. In a way, making a sacrifice seems like what we should be doing. After all, I did not make any sacrifice when racking up the credit card bills!
Though, at the time I justified it as needs because it was often on groceries when my husbands salary was cut. But, really, we just did not want to adjust our lifestyle, not adjust just what I was cooking. Nothing was cut from our budget while we put legitimate needs on the credit card. It absolutely stinks to be paying for a loaf of bread three years later!
Week one was liberating! It was not confining at all. It was so much easier to say "no" to the kids when they wanted to eat lunch out because I had this set amount we could spend over the next two weeks. I have had to act as though the money left in our bank account simply does not exist.
I have learned that a debit card still allows me to have a credit card mentality. It's a mentality I have fully embraced for the past 20 years. Up until last week I have been a 100% committed debit card gal. I just pray the Lord will continue to encourage me on this and hold me accountable for what I spend. My husband works very hard to earn this money, the very least I can do is not only honor the Lord, but him in how I spend it.
Plus, it gets me one step closer to being my grandma...if you cannot pay cash for it, don't buy it!
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