As it is the first of June, this means that my wife and I have finished our first month of using a cash economy. As a whole, I declare it a success. In the month of May, we spend less than what we made. Not a lot less, so there is room for improvement. But after too many months of random overspending, this is a wonderful development.
A few tweaks that need to be made. At the beginning of the month, we divided our budget into three piles: my person, her personal, and household/groceries. We each took ours and the household went into a safe location to be taken out as needed. The problem was that we often bought groceries and such as time allowed, often without a trip home. This lead to some complicated accounting when we came home, trying to exchange the change we had for the right bills from the household bank.
This month we are tweaking it, giving each of us some household money to carry around. This allows for those quick trips to the store on the way home, picking up that key ingredient for dinner. This should make things smoother.
We are also managing non-cash purchases better. Last month, if someone bought something with credit, we simply put the appropriate cash into the household bank. But this confused the issue about how much we had spent from the bank and what was left. This month we created a second envelope containing next month’s money. Any money that is “spent” with credit goes into the second envelope. This amount is then deducted from what I withdrawn at the beginning of next month. It will keep us honest and make accounting easier.
The goal this month is to actually save money. With these expenses locked down, we can look to start cutting in other ways, while keeping our eyes out for more income opportunities. Soon we’ll be able to get out from our debt and start planning for the future.
-That is all.