Quick, where’s that quote from?
If you are my two aunts from Idaho (wink, wink) you know that we must have started taking a Dave Ramsey course. We are on week 4 of this financial class and are learning a lot. This week though we finally started using our envelopes. For people unfamiliar with Dave Ramsey, his main teaching point is to get rid of credit cards, pay off debt and use cash for almost all your every day purchases. What’s been good for me especially is that while we don’t use credit cards, we don’t do well using our bank card. I don’t spend cash the same way I spend with my debit card- even though the money is coming from the exact same place.
Here’s an example:
Yesterday I made my monthly trip to Costco (yeah!), this time I had cash and I knew what I needed to get. I was trying to calculate in my head while I was shopping. It was probably one of the first times where I passed things up because I knew I needed to make sure I had enough money for specific items. I went to check out and I had over calculated the total in my head. Old me would have either used the cash and paid for the rest with the check, or just paid for the whole thing with a check and then save the cash to use later. Yesterday I actually had the cashier put items back!!!! I quickly decided on items I knew I didn’t need and made sure the total was within my cash amount.
It wasn’t too bad yesterday to do that, but I know that there will be days that putting items back is going to be really hard. But like the title says, if we really want to be financially independent then this is what we have to do.
It’s also been interesting because being prepared for what we are spending each month forces me to more organized. I’ll have to get back to menu planning and this time I’m going to include lunches because that’s our biggest weakness as far as shopping goes.
I may post here every once and a while about this process. And if you ever run into me at the grocery store, I’ll be using my envelopes!