Envelopes, baby!

Hi guys (and gals)!
I was so excited to hear that today's "show us your life" link up on Kelly's Korner was money saving tips. BOY DO I HAVE LOTS OF THOSE! I will try to keep them to a minimum today, though. I know you don't want to be reading this all day.

Here goes!

1. Envelopes, baby!!
Laugh all you want, but I am a total Dave Ramsey nut. I have been listening to him for years and I really believe that someone who has made a VERY good living following his own advice because of screw-ups he made is his own past (and learning from them), not to mention the fact he has helped thousands of people out there cannot be wrong. I have mentioned before that The Total Money Makeover is a book that everyone should read. If you follow his advice, doing the debt snowball and the envelope system you will find yourself getting out of debt and building wealth. You can click on the blue link I gave you to go to Amazon and get a good deal on it. It is really one of the best books I have ever read!!



Now, does this mean that I have made it all the way through the plan? NO. But, I am working on it!

My own mom even taught me growing up that you should use envelopes for things. I promise you, it works! When I want to save up for something specific I make an envelope for it. Even if I only have few bucks to get it started, the envelope is there and it gives me hope. Dave even suggests using it for monthly expenses, which works great too.

Right now I have an envelope for my driveway, which I intend to have paved. I have an envelope for it, and it makes me so excited every time I can add to that. Plus, because I have the envelope stashed away, I am not tempted to spend it on crap stuff.


2. Round up in your checkbook
It may sound strange, but this is something I have been doing for years, and as long as you are careful it works great! Any time I write an expense down in my check register, I round up to the next dollar. Whether my total was $5.09 or $5.89 I automatically write down $6. First of all, this helps with the math when I start trying to balance things. My husband was a math major, not me! I hate all the scribbling and subtraction in the edges of my check register, this makes it so much simpler. Then, every month when you get ready balance stuff out you will notice there is a little extra in there. You would be surprised how fast those pennies and quarters add up!


3. I NEVER USE CREDIT CARDS!!!
OK, I know you are tired of me talking about all the Dave Ramsey stuff, but hey if it works I go with it!!

The whole argument I have heard about credit cards is " I need it for emergencies", but if you have your emergency fund built up (starting out this is $1000 in the bank, in a normal savings account) then you have it there to fall on if that emergency happens. You know, the $400 car repair you weren't counting on...... (well, in my case this year it was more like $700 - ouch!) then you have your emergency fund there to take it out of. Then, you just gradually put it back, and just think you won't have to pay interest on that purchase or dread going to the mailbox for the inevitable credit card bill that you know is coming.

4. Pay cash for stuff!!

This one should be obvious, but if you cannot pay cash or write a check for it DON'T BUY IT because YOU CAN'T AFFORD IT!!
OK, I know this might get me some nasty comments but that is alright. Everyone is entitled to their opinion, but that is mine and I guess if you are reading this then you know that by now. This is just how we do things. Plus, it has been proven that when you use a credit card to pay for stuff (even if you intend to "pay it off at the end of the month") you are more likely to spend more than you would if you paid cash. Interesting, huh?

Ok, so those are my tips! Let me know if you have done the same and how well you are doing!