Paying our huge credit card balance was getting us nowhere to being debt-free. Monthly $211 interest is has encumbered us so bad from reaching our goal to pay our debts. So, my husband has set aside grocery money every two weeks. This cash-method has helped me stick to the plan in getting/buying only what we need. I have portioned my grocery allowance per day expenses. If I don't go to the grocer a day or two, the cash money will go to my tin piggy bank savings. It's amazing how much I have been saving. And use some of the money for a memorable holiday, save for a dinner date with my hubby. Or just... save. So liberating!
I'm glad you found a system that works for you. I think Dave Ramsey's cash plan is very effective for many people working to get out from under credit card debt. I have actually never carried a balance on my credit card, so I've learned to budget by using my credit card as much as possible. I have grown to love being able to go online and see exactly what I'm spending my money on. I like having everything neatly listed in front of me, with dates and locations. We've also made pretty good use of different credit card reward systems, so it makes more sense for me to USE credit cards than cash. I realize this isn't realistic for everyone though.
I've also never carried a balance on my card. I learned from my mother who ended up paying 3,000 dollars for a pair of pants. That stuck with me all my life. I made it a point to pay my bills in full & on time if not over paying on utilities. No point in paying more for something because you're late. Though I do understand. My mother had to do things like that because the ends never met & it bought her time.
Thank you. Online banking tech simply eludes me. I don't do the balances of accounts, credits, expenses and payments. Cash on hand is simple and easy to do and maintain. When we're done with our debts within 8 months,trustingly, it would be so freeing to see our credit card balance, zero (0) balance. Incentive and motivation for us to save money. I'll check on Dave Ramsey's cash plan. Thank you.
I do still carry balances on my credit cards that I am feverishly trying to get paid off at the moment, so the cash for groceries plan sounds like it would be a good one. For a while, I was going to grocery store like everyday and getting things I needed, as well as finding things that I did not need and would spend a lot more on groceries than I intended. I have also started to pay for groceries in cash and just reserving my debit card for bill payments and getting things like gas. I do not like surprises when I open up my account online and find that I have less money than I thought I did.
We learned our lesson the hard way-- a hard knock on our heads. Thankfully, our helmets kept us insane, thinking and smarter. Our recentLog In , with paying 0% percent interest for 16 months has been a breeze. Now, we see the whole picture on our spending in a brighter light-- with smarter spending practices. Cash allotment for groceries has been wonderful!
We use cash with groceries too. I even deliberately leave my cards in the car so that I'm not tempted to go over. Going through the store mentally tallying up costs helps me stick to the list and not buy extra stuff until the end. It also gives me incentive to buy generic items on the list to save a little so I can buy extras.
Having a budget like that is a great idea to save on food and it really is surprising how much money you save in the long-run when you stick with that budget. I started setting a hard-limit of $150 a month on food for myself a few months back and I've already saved close to $50 a month. You really don't realize how much the extra couple items you pick up that you didn't intend to buy adds up at the end of the month.
