BBKT
Member
Cash: $ 4.30
Posts: 17
Joined: 02 Mar 2009
Location: WA
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| Our Problem with Cash... |
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Is that we blow through it if we have it. I know this sounds counter-intuitive, but maybe my hubby and I are just backwards. We don't use our credit cards anymore, but we use our checking account debit cards for everything and auto-bill paying options online. We are on a tight budget and aren't spending outside our means. We go out, but we make sure we don't spend more than what our budget allots us.
Our major problem is if we get unexpected cash and if we don't go right to the bank and deposit it, we will go out and blow it all in an afternoon. I own a small home business and every few months, we'll get a payment of about $400 or so that's not worked into our budget (just "extra" money). Sometimes I sell things on craigslist and I'll get extra cash from that. I also get tips from my work (about $50 a week) and that goes into our "change jar". If I have a small expenditure, like filling up with gas every two weeks, running to the store for something small, or having to mail something out, I'll use my tip money. I don't see a problem with that, because my tip money isn't added in to our budget.
I began to notice a pattern after our last large cash outing two months ago. I sold something on CL and had $300 cash in the jar. Hubby put it into his wallet and we went to dinner, then a movie, then to the mall. The whole $300 gone in an evening! I don't even remember what we saw or ate!
I knew it was going to happen again this week. I got $300 from the business, added to $100 in my tips, and another $300 from a CL sale. The only "extra" bill we had this month was our homeowner's association dues, so we paid that immediately. I went to the store and bought some baby items and some makeup: $80. We have family visiting this week from out of state, and then my husband said the magic words "just leave me the cash and I'll use it while the family visits so we won't have to worry about the budget". HECK NO!!! I knew it would be gone in two days, so I put it in the bank and there it still sits. I'm planning an extra payment on my student loans. Instead, I had $20 in tips in my jar from the last two days that is now gone, because hubby blew it on overpriced food at a Mariner's game.
I can't blame him for this, because we both do it whenever we have extra cash laying around. I don't want to include the extra cash and tips in our budget, because it's not guaranteed and not regular. The only option I can think of is to hide the money until I can get it into the bank then pay a bill quickly. Any other suggestions at how we can break this habit???
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Fri Aug 06, 2010 6:57 pm |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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You know what the problem is. You know what the solution is. Stop talking about it and start doing something about it. There's only one thing you lack so far, and that's discipline. Only you can provide that. If the discipline isn't there, any method will fail.
~Tim~
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Sat Aug 07, 2010 4:12 pm |
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oldguy
Senior Member
Cash: $ 309.10
Posts: 1480
Joined: 21 May 2006
Location: arizona
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There are books that describe how humans treat 'found' money and 'earned' money. Maybe you can google one, and check it out at the Library (it's the big brick building where no one ever goes but your taxes paid for).
People use 'found' money for a treat - a short vacation, trip, dinner out, a new thing for the house, for the kitchen. But they have their 'earned' money auto-deposited into their 401k, Roth, or CU.
A good example of this is the income tax refund, the average refund is $2800. Most people over-withhold all year on purpose and then blow the refund on treats. Meanwhile, they are probably paying 12% on the CC debt that covers the $2800 of over-withholding. Makes no sense but most of the population does it. Even sillier - the people that over withhold all year will pay HRBlock an extra $50 to get the quick refund (of their own money), LOL.
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Sat Aug 07, 2010 5:57 pm |
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judyfn
New Member
Cash: $ 0.60
Posts: 3
Joined: 07 Aug 2010
Location: California
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You need a savings goal.
Please note: Everyone should have at least 6 months worth of living expenses put away in a savings account.
No one, absolutely no one should live without this - I hope you're not.
If you don't meet your savings goals - both of you buy nothing - absolutely nothing that you don't need.
Start cooking all meals at home - never any more fast food or dinners and start drinking water and tea - no more cokes until you meet your savings goals.
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Sat Aug 07, 2010 10:47 pm |
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creditcrack
Contributing Member
Cash: $ 8.00
Posts: 40
Joined: 25 Jul 2010
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I think that you have not had the situation yet in your life when you really need extra cash. If you spend all money on your preferences, then you should settle the saving rules in your family because all people should have the cash on saving accounts! You should be disciplined!
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Sun Aug 08, 2010 5:06 am |
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Mr.
Member
Cash: $ 0.25
Posts: 15
Joined: 13 Aug 2010
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Something to think about.
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Fri Aug 13, 2010 6:48 am |
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Adria.John
Preferred Member
Cash: $ 32.60
Posts: 162
Joined: 20 Apr 2010
Location: UK
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The ways in which the man on the street has been affected by the credit crunch are almost too many to list. The majority of us are finding it harder to get through the month until our next payday without cutting back significantly on our spending or dipping further into our credit accounts.
Payday Loans are also increasing in popularity to fill the gap between the middle and end of the month with some people even using them for basics such as food or utility bills. We've seen increased prices too, the most worrying and well publicised of which have been grocery shopping and fuel.
There are many reports that organic foods are also being shunned in favour of cheaper, more commercially grown alternatives and the price of basics such as bread and eggs has risen by as much as 21 percent in the past year.
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Fri Aug 13, 2010 12:54 pm |
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SaraCEO
Member
Cash: $ 2.05
Posts: 10
Joined: 13 Aug 2010
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You can save money from your extra activities and put your whole money on your business. This way you can earn more and save more.
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Sat Aug 14, 2010 12:35 pm |
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OneDayWithoutDebt
New Member
Cash: $ 0.60
Posts: 3
Joined: 15 Aug 2010
Location: USA
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BBKT,
A few thoughts:
First, anything you do without involving your husband will likely cause more problems than it solves. I'd suggest you sit down together and come up with a plan - if he agrees that your behavior with cash is a problem.
Second, once you do come up with a plan, make it as automatic as you can. I know this is hard with cash because you have to take it to the bank yourself, But maybe you could make a rule for yourself that you never come home with found cash in your hands. Keep deposit slips with you and make sure you drop by the bank before you come home.
If the cash does make it into the house, instead of it going into an unlabeled jar, maybe you could make a nice box with a name on it - whatever you agree the money is going for. Perhaps if you see the goal on the container, you will be more reluctant to take the money out. Even an envelope could serve this purpose. It is the goal that is important, not the container.
I hope these help!
Find tips and tools for taming your money monsters at http://www.onedaywithoutdebt.com.
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Sun Aug 15, 2010 2:53 am |
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BBKT
Member
Cash: $ 4.30
Posts: 17
Joined: 02 Mar 2009
Location: WA
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Thanks for the advice. We had been saving the cash for "little" expenditures (gas, postage, midweek grocery store runs, etc), with an overall larger goal of getting a baby crib and dresser set later next year. What we found was that we were spending more on the little things, and not actually saving for our overall goal. But our goal has changed a bit since I've found I can trade in my old college textbooks on Amazon for Amazon gift cards. I've got over $500 in Amazon gift cards now and I'm planning on getting the baby set with that. Yay! 
Instead, we've decided that all the extra money coming in that's over $50 at a time is going to go straight into our savings account. I'm currently putting away several hundred dollars a month into savings to prepare for maternity leave (which is approx 2 years away). We are still about a year away from trying to get pregnant, and I'd like to take at least 4 full months, then a few more months of transitional part time work. Any money that comes in a little at a time (my tip money), will continue to get into the jar and be used for little things, with a max of $50 in the jar. Anything over that will go into savings. I think it's a good compromise and we are still living very well with our budget. I also think that once my husband deploys this December, it will be a bit easier to save all the extra money because we will have a much smaller budget with just me, and a much higher income with his deployment pay.
**Tip well and tip often!**
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Tue Aug 17, 2010 3:46 am |
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OneDayWithoutDebt
New Member
Cash: $ 0.60
Posts: 3
Joined: 15 Aug 2010
Location: USA
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Congratulations! It sounds like ya'll talked about it and came up with a plan you can both support. That is half the battle.
Good luck with that baby thing!
Find tips and tools for taming your money monsters at http://www.onedaywithoutdebt.com.
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Tue Aug 17, 2010 4:32 am |
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btacay
Member
Cash: $ 3.10
Posts: 12
Joined: 13 Sep 2010
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| Breaking The Habit |
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Having a complete banking system in every spending aspect of your life, you are on your way of becoming much more efficient at controlling your money and minimizing the amount of overspending and waste.
I understand how frustrating it feels after you realize that you just wasted your hard-earned money through impulse spending time and again. I had exactly the same problem you have right now before I found this wonderful website that helped change my outlook on the real value of saving my hard-earned money for future use.
http://www.moneyskillsforlife.com
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Tue Sep 14, 2010 4:48 am |
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mukeshkkashyap
Full Member
Cash: $ 21.20
Posts: 99
Joined: 05 May 2010
Location: india
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If you don't meet your savings goals - both of you buy nothing - absolutely nothing that you don't need.
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Tue Sep 14, 2010 6:42 am |
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Jammy
Full Member
Cash: $ 15.90
Posts: 73
Joined: 15 Sep 2010
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| Get started on it |
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Actions speak louder than words. I would say instead of just saying it, get started on it asap.
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Fri Sep 17, 2010 7:17 am |
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mukeshkkashyap
Full Member
Cash: $ 21.20
Posts: 99
Joined: 05 May 2010
Location: india
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Loans are also increasing in popularity to fill the gap between the middle and end of the month with some people even using them for basics such as food or utility bills.
Personal Finance Planner
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Fri Sep 24, 2010 7:09 am |
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