22 – broke – and able to afford Europe?? A Cash Envelope System

I started out 2013 with a goal of getting organized. Well it’s April and the only part of my life that I can say is far more organized than it used to be is my budget & saving money. The system I use (that has worked well for me) I found on none other than the wonderful, Pinterest!! Since I’ve had a few friends ask about Europe costs and how I’ve been planning things out for our trip, I’ll make sure to post about that as well.

Here’s the system, thanks to Simple Dimples blog:

20121129-_MG_2261

For envelope templates from Simple Dimples, click here.

It’s a cash-based system. So I get paid on the 1st and the 15th (some times it changes depending on if the day falls on a weekend). My check is on direct deposit to my savings account and then I pull out cash (in twenties) and split it up into my envelopes for gas, food and misc. Since I have the luxury of still living with my parents, I am able to save A LOT, I know it won’t always be this way. I’m so thankful! Thanks mom & dad! 🙂 Eventually, I’ll have to figure out how to modify this cash-based system to work with paying bills, rent/mortgage, and such. But we’ll cross that bridge when needed.

On Simple Dimples, there is a template for the envelopes which fit perfectly into my wallet and little ledgers that fit into the envelopes, so you can keep track of where your cash is going.

This system has worked really wonderful for me. I find it more difficult to spend cash than swipe a card, so I actually THINK about my purchases. I also think about how much money I have left until I get paid next. It’s such a great feeling when I get paid and still have cash left over from the previous 2 weeks! It means I’m saving even MORE (and I don’t have to pull out as much cash for the next two weeks)! I love it!!!

I always consider myself on a budget/ballin’ on a budget/broke, I spend most of my money on gas, I eat out every once and a while and that’s about it! The reality is I’m not broke, I have money in savings and I’m able to pay for all of Europe! But I’m able to do that by being very strict about my weekly spending, by keeping the frame of mind that I ONLY have a certain amount to spend and then it’s gone, keeps me on track with my savings! So I’ll continue to say I’m broke and tell myself that I’m broke 🙂

xoB

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