Cash Envelope System

Cash Envelope System

I thought I would share a little about the cash envelope system, including the how and the why for you here on my blog. A little back story as to how I stumbled on this system for budgeting. I say I stumbled onto this system because it was all pre wifi and I had no idea about the Dave Ramsey system, which has helped thousands of our American cousins get out of debt across the pond!

When I had my eldest, I was in my early twenties and pretty much penny-less! We were living in social housing and receiving income support. Back then child maintenance was only £10 per week, and I had an undiagnosed Asperger’s child with sensory issues. So, making money stretch to cover holidays, clothing that my child could cope with wearing, Christmas and still be able to put food on the table too.

Ok fast forward to present day and after a hiatus of using our flexible friends to pay for everything, tapping to pay and chipping and pinning, we made the decision to learn to live within our means and begin saving in earnest. We want to save a big deposit to purchase a house. We cannot do that with how we were spending up until the end of January.

Our income is split into segments. We have weekly allocations of our income which needs to cover standing orders, subscriptions and direct debits. This money is deducted from the money in hand amount and then our cash expenses are worked out from the balance.

Valentine’s Day Parent Style …

Valentine’s Day Parent Style …

Now ordinarily a pre-child Valentine’s Day would have been dinner out with candles, fizz and a huge bouquet of red roses. Once parenthood hits you may get the odd date night out if it happens to fall near the weekend, otherwise you pretty much have to make do at home. All too often that means the night for romance gets shelved until a later date …

Written in pen …

Written in pen …

I recently went to the bridal shower of the most lovely young lady from church. She has been through trauma with crohn’s disease and still managed to have the biggest smile on her face.

We had vintage tea cups, plenty of tea, cakes, food and proper belly chuckles at her shower. We were then asked to grab a gift tag and write our marriage advice for the couple. Some pondered and some wrote hilarious anecdotes. Mine was simple … always write date nights in pen!