I have been crucified with Christ; and it is no longer I who live, but Christ lives in me; and the life which I now live in the flesh I live by faith in the Son of God, who loved me and gave Himself up for me. I do not nullify the grace of God, for if righteousness comes through the Law, then Christ died needlessly." Galations 2:20-21
Tuesday, June 2, 2009
Family Budget Update
Last month we decided to switch over to a cash/envelope budget system. I must say, I was a little skeptical about it. The Costco membership we got this month cut into my grocery budget, so I was a little worried that I wouldn't have enough for food. We also ran out of money for gifts pretty fast. B and I went over the finances for May over the weekend and we were pleasantly surprised.
Dave Ramsey turned us on to the envelope system after hearing that people save an average of 12% more using it. We only have two credit cards. One for emergencies and one for everyday use. We never carried a balance on either card paying the complete bill every month. We still felt like we didn't quite have a handle on what we were spending each month. We haven't actually "cut up" our credit cards yet, but we didn't use them at ALL last month. Using this envelope system and using cash for almost everything (everything but the bills we pay through our bank online from our checking account) does work. I am excited to say we actually ended up saving 20% MORE this month! We ended up having $8 left in the grocery budget even after the Costco membership. I know I can do better next month. We ate a lot of meals "from the pantry." I was able to be creative with what I had in the freezer, fridge, and pantry. Now that I am learning how to sew, I am able to be creative and frugal by making gifts for people. It's really been great.
I can't wait to see how much we will save this month!