The power of CA$H!

Every morning on Great Day we give money saving advice. Yesterday we talked about the importance of spending cash – real cash. A lot of us use debit cards because they are ‘like’ cash in that they automatically take the money from your checking account, like a check. However, few of us budget the use of that plastic. Sure, we’re not getting into debt, but we could be even more prudent. A viewer emailed her family’s prudent, money saving cash plan. It reminds me of how I saw my parents spend money growing up. Maybe what’s old (smart) is new again! Here’s the viewer’s email.
Peace, Kim

While I was listening to you this morning, I flashed back to a conversation I had with my husband last year concerning our finances. You were talking concerning purchases using cash versus debit card. Well in our home we have been using "envelopes" for about 5 months now, and I am AMAZED at the amount of money we have saved. My husband and I put a budgeted amount into various "envelopes". They are actually made of a material with a mesh front and there are 3 to a row, they clip into a 3 ring binder. They are labeled in the front according to our household needs. When I need groceries, gas, weekly spending money etc.. I open the envelope and remove the cash. Anything left over from the budgeted amount gets returned to the envelope. Has this been an eye opening experience for our whole family. We have included our 4 and 6 year olds and they are further understanding the importance of money and living within a budget. I have to admit to being resistant to this in the beginning, but in this case my husband was right and it has been a great life lesson for us all.