Tuesday, 22 April 2014

envelope system challenge accepted!


as much as i try and set and adhere to a budget, i find myself continually overspending.
in an effort to "build my credit", i tend to make virtually all my purchases on my credit card.
though i always pay it off, too many a time my jaw has dropped upon seeing my balance.
anyone else do that thing where you hold your breath and wince while opening the envelope?
just me, huh?...

this year, i vowed to take better control of my finances and actually stick to a budget and all that jazz.
but finding an efficient way to do this has proven difficult...until now.
enter dave ramsey and his "envelope system".

dave ramsey is a financial guru and i came across this article of his while on my study break and am sold.
basically, he encourages people to adopt a cash only system in an effort to set spending limits for themselves.
one simply creates budget categories and assigns each one an envelope.
in each envelope you then put in the amount of money you allotted for a specified period of time.
once that money is used up, you're done until the next time you top-off that envelope.

he swears by this method of budgeting because as he puts it "there's something psychological about spending cash that hurts more than swiping a piece of plastic."
(i laughed upon reading that sentence because i can tell you that there have been times when i've had cash on me yet still opted to "swipe".)

i get paid this week and will start the process of shifting over to the whole cash in envelope system of budgeting.
i haven't started to set categories/budgets just yet (exams, gahh) but am thinking of starting with tithes, food, transportation, toiletries, clothes and entertainment (aka. fun moneyyyyy!)
i'm excited to get started but i know it'll be tempting to just go to the ATM once i'm out of money.

i'll let y'all know how it goes...


ps. me after watching the scandal season finale...

i can't with shonda.
i just can't.


  1. sounds like a good idea .. but it may already be too late for me


  2. Very fun read! I am actually very good about sticking to a budget but that's because I hate spending money--I just like getting new things. :) The envelope idea sounds interesting...definitely harder to spend actual cash, but it won't help build your credit. Might not matter though, as the biggest things for that are like your phone bill, car bill, insurance, apartment, etc.

    And I'm totally with you on the Scandal stuff. Shonda is killing me. I thought it was a great season, but just a bit too much drama.


  3. That's a great Idea, am also a heavy spender but I try to manage well


  4. i too use that ole debit card. i never have cash on me!

  5. Story of my life Vanessa. I always spend money i don't even have, lol!! Thanks for sharing this - will defo give it a try. :-)


  6. Thanks for sharing this. I need to adopt this method too. Nice blog :)

  7. For me, I can throw the cash and swipe just as fast. KMSL! But, I can say that this year, I have cut back on my spending and found ways to do without all the things that I thought I needed. It took some time to get to this point, but I finally made it. I think I like seeing the extra money in my bank account and knowing that if I do decide that I really want to buy that new bag or some new gadget, it's there. But more importantly, I think I'm more satisfied with the fact that if I ever have an emergency, I could handle it.

  8. Here I was thinking it was the Nigerian side of me that preferred cash!!!! The last shopping spree I did was my wake up call. I cried out, making all the shop keepers burst into laughter. So I agree, spending cash keeps you in check better than cards!!! I'm proof!!!!