I am one of those moms.
The ones who count down the days until school begins.
The kids started back on Wednesday and were super excited.
Yeah, I guess Noah doesn’t look too sure – but that’s his permanent picture face. Beza doesn’t look too excited but trust me, she was.
Part 6 of our Debt-Free Story
At some point after graduation when we had real jobs and were facing a budget crisis we SORT OF tried the cash envelope system. It kind of worked but was frustrating and not fool proof and we soon gave up.
The problem was that we didn’t have a good budget in place and so it was doomed to failure.
Really it’s an age old system and has been around for a long time. Another signal that it’s a good idea.
So here’s how it works.
After you do your budget look at all the categories that aren’t either bills paid online or auto drafts. So this will be your groceries, eating out, entertainment, date night, clothes, toiletries, car repair, gas etc.
On payday withdraw the total amount of cash for these categories and divide it into envelopes labeled with the category. You can use just regular white mailing envelopes or you can get one of the envelope systems from Dave Ramsey. (If you’re crafty there’s even ways to make your own and have some fun like here and here. Check out etsy.com and search “cash envelope system” for some really unique ones like this and this.)
The idea is NOT to use your debit card! Why? Numerous studies show that people spend 12-18% more when they use plastic (debit or credit) then when they use cash. Think about it. When you go to pay for your groceries what do you think is going to register with you more – laying down 4 $20 bills or just swiping your card. If you’re spending $400 a month on groceries now (using plastic) and start paying cash that’s about $60 you might be able to save.
It took us several months of adjusting both our budget and our envelope categories to get it right. We (and you may be different) have the following categories:
You’ll notice there’s no envelope for gas. That is our exception to the rule and we use our debit card. Because, let’s be honest, it’s not like your going to SPLURGE on extra gas. Or buy a more expensive gas because you’re using debit and not cash. Besides, what mom wants to drag all her kids out of the car to go inside and pay cash.
Now here’s the kicker. When the money in your envelope is gone, it’s GONE! What do you do if, 3 days before payday, you are out running errands and the 3-yr old is whining from the backseat and your too tired to even think about dinner and are contemplating the drive thru? You look in that entertainment envelope. If there’s money you’re in luck. If not, well suck it up and drive home (turn the music up to drown out the whining).
Now, theoretically you can borrow from another envelope if one has the surplus but beware lest you spend something you need before payday.
I will be totally honest and admit to you that we fall off the wagon REPEATEDLY. Like this summer? Total bust when it comes to the envelope system. And it’s my fault as I’m the budget/cash manager. But I also know that when we are off the system, we are off the budget and nothing comes together like it should.
Be patient – it’ll take you a few months to work out the kinks but I promise, if you use it, it will work. And, most likely, you’ll be spending less which means more money to save or pay off debt. More on that next week!
(Here’s some more tips on the envelope system from Dave.)
THE REST OF THE STORY
UPDATE: Friday 7:44 a.m. DONE!! You guys rock!
UPDATE 10:41 p.m. We are $173 from reaching our goal of sending 20 Ugandan kids to school. That means if we can get $86.50 in donations and add our match, we will meet the goal! Would be SOOO cool to do it in one day!!!
Two years ago we decided to start sending the kids to Christian school. It was actually the year that Beza and Luke would be coming home (mid-school year) and we felt the smaller classroom and biblical-based curriculum would ease the transition and give them the Godly foundation for their life in our family.
Last year we struggled with the decision of re-enrolling the four kids – torn by the cost and whether we should be spending that money on a Christian education when it could go so far to help those in need across the world. It’s that continual balance we fight to find between our needs and wants (and what we feel is important for our kids) and helping others.
Well, two weeks after school started last fall we found out that Luke and Beza qualified for a $6,000 scholarship, reducing our total tuition by half. We were also blessed with friends who used the Arizona Christian School Tuition tax credit which further reduced our costs.
God knew the desire of our hearts (Christian education AND helping others) and provided.
While we originally thought the scholarship was a one year only thing we have been blessed to apply for and receive the scholarship for this year as well.
Because of God’s blessing we want to pay it forward and one of the ways we’re doing that is to help these beautiful kids at one of World Orphans projects in Uganda go to school. Education is a VITAL piece in breaking the cycle of orphaning and abandonment.
There are 20 kids. School fees are $62 each.
So here’s the challenge…
We’ll match every dollar you guys donate on our campaign page
until we reach the goal ($1193) and all these kids school fees are paid.
If you donate $36, we’ll donate $36 and that’s one child educated.
We’ll match any amount $1, $5, $100.
Because no challenge is any fun without a deadline we’re going to give you ONE WEEK!
How to Give: