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Originally Posted by pallotta I used to keep less than $20, but at the beginning of last year, I went on a new debt reduction and budget and used cash only for EVERYTHING. So now I have different envelopes of cash for each spending category. I don't carry all my envelopes all the time, but I think I usually have about $500 on me.
If my purse gets stolen, I may be out a lot of cash but they won't have any credit cards to rack up (just my Paypal debit card which has less than $100). And I spend a lot less cash than people who use credit/debit cards. It's just too easy to spend plastic than it is to spend cash.
By the way, using my new budget/debt reduction cash only plan, I was able to pay off the $16,500 balance on my minivan in just 10 months. If you new our income, you would know that was IMPOSSIBLE! |
You are wise!
Is that $500 a month that you budget for everything? Gas, groceries, eating out??? Are you able to get your DH to do the same? In my home, DH is the primary breadwinner so it is very hard for me to put restrictions on him since he really does make good money (and have great benefits)...
I have been to workshops on debt reduction and this is always what is recommended (budget envelopes with cash).
Good job for paying off that minivan!
