I have decided to start doing a tip a week. It might be any kind of tip, from a frugality tip to a laundry tip, to a cooking tip - just depends on the kind of things I have been doing this week :) Let me know if you like it! I know this blog was started for personal reasons, and posting about my walk is important to me, but I can't do that everyday, and I need something to fill in the rest. Some of these will be auto-posts, I will do them as I think of them, and set them to post for the next
Tuesday. If you think of something you would like a tip on that I might know, let me know and I will post it :)
So this week's Tuesday Tip is about money. Or more importantly how to control it. It's a simple tip, and one many of you might already use. It's called the "envelope system." I will not even begin to take credit for this one, I have heard it so many times over the years from places like Money Matters and Dave Ramsey, however it was something I had never put into practice until I needed to.
It's fairly simple, as I said. Basically you take your budget (you have one, right?) and look at your non-bill money expenditures such as gas, groceries, clothing allowance and entertainment (or any combination of what you spend. I don't actually have a clothing allowance or entertainment budget, but I know many of you do). Then, every week, two weeks, bi-monthly - however often your family gets paid - go to the bank and take out EXACTLY that much money.
So for example, say you get paid weekly to keep this simple. Say you spend $50/week on groceries, $30/week on gas, and on average $5/week on clothing. The clothing one is a bit tricky, rarely is it people buy clothes weekly, but it does need to be budgeted so that when it does come up, you have the money for it. For us, except for shoes, we don't have to buy clothes - there are kids in line just above mine who seem to outgrow their clothes just as my kids need more. And being a
SAHM, I can wear just about anything that is modest and in good condition, so occasionally I will go to the salvation army with leftover money from other budgeted areas, but mostly I have been blessed with clothing gifted to me by others (either used or new, it doesn't matter to me :) So anyway, back to the budget....
When you go to the bank, take out (for this example) $85. Put the money in designated envelopes, then put the checkbook and the mac card in your desk drawer. (Or hide it in your wallet - the idea is out of site, out of mind, but be mindful of emergencies such as needing a tow truck or some other such hassle). As for the envelopes, you should mark them with what they are for - food, gas, entertainment, etc. If you get paid every other week and you took out two week's worth of money, have 2 sets of envelopes, and each one has either week 1 food or week 2 food. You get the idea. Some might accumulate, such as the clothing - you won't buy anything for $5, however by next season you will have enough for a few new (or new-to-you) items. Some might be drained weekly...
Now the hard part. Once the money in any envelope is gone, that is it. No more spending in that category. If you use up all your gas money by
Thursday and still have somewhere to go, you have to pull money out of clothing or food, etc in order to get there. It helps keep you accountable for your spending limits. I find it necessary to take a calculator to the grocery store to keep to my limit - it's embarrassing to get to the checkout just to say, "I can't pay for this, this, this and that, can you please take them back?" :-) When I get to my limit on my calculator, I decide if what is left on the list is a necessity. If it is, I go through the cart to decide what has to go back. NEVER has it happened that I didn't have the money for what was necessary, but needs and wants rarely meet.
One very important part of the envelope system that doesn't seem obvious is PRAYER! Pray over your monetary situation!!! :) We pray over everything else, don't we? When we give at church, don't we ask God to multiply our money to do it's greatest good for His kingdom? Why shouldn't you pray over your envelopes? "God, please grant this money the ability to do all it needs to through You. Let the food money be enough to fill our bellies, let our gas not run out, and let us be clothed in attire fitting our representation of You. In Your precious Son's name we pray. Amen"
It doesn't have to be elaborate to work. That goes for the money system as well as the prayer! :)
Be Blessed.
One Christian Mom