We’re making some changes to how we manage our finances this year. Our destination isn’t changing, but the trip is.

• All of the cards are going away. Not necessarily destroyed, but certainly inconvenient. There’s a $7000 overdraft protection account attached to our debit cards. There’s no need for an “emergency” card. If it’s truly an emergency, we are covered. We are going to destroy some and ice the rest ^[1].
• We’re going to go “cash only”. We’ve going to the envelope system ^[2]. There will be an envelope for grocery money, gas money, discretionary money, and baby ^[3] crap. If there isn’t enough money in an envelope, it will have to come out of another envelope. If we don’t have enough money, we’ll have to do without, instead of spending imaginary money at 10% interest. Gas will be the exception, so we don’t have to bundle the kids up to pay for gas. No money, no spendy. We tried a “virtual envelope”, with every purchase tracked by category in a spreadsheet, but it didn’t work. Real cash, real empty envelopes. Discretionary money covers school activities, miscellaneous household item, and anything else that pops up.
• We’re going to start the “30 day list ^[4]”. If we want something, we’ll put it on a list. If we still want it 30 days later, it will be okay, provided there’s money for it. This is part of what the discretionary budget ^[5] is for.
  
• My wife is getting $50/month “blow money”. Absolutely unaccountable. If she doesn’t have this vent, the whole system will fall apart.
  

This is all stuff my wife and I have talked about and agreed to, but now, it’s organized and laid out. We HAVE to do it or something similar. We are both on board with this plan. We should see our debt management plan skyrocket, without feeling like we are missing out on life.

Related posts:

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