The Envelope Budget

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I was really frustrated at my July Spending Fast savings...  After the first pay period, I was able to contribute $500 towards my goal of a down payment on a house.  That amount is about how much I had anticipated saving every pay period.  However, the second pay period of July didn't go as well.  I was only able to contribute $75!  Where did the rest of my money go?

I went over budget in almost every category, because my debit was just easy to get to!  I lent people money, and I am still just in the habit of swiping away, without considering what it's costing me in the long run.  After watching one of my new favorite TV shows, Til Debt Do Us Part, I was inspired by the allowance jars.  Essentially, each couple gets put on a cash budget,  the cash is separated into different categories of jars (mortgage, groceries, etc.) that has to last for the month.  Once the cash is gone, there is no more.

I've thought about using this method before, but honestly I prefer my debit-card.  The debit card is much more convenient when it comes to tracking expenses.  Unlike my brain, the bank doesn't forget about or miss any debit transactions, so everything is recorded on my monthly statement.  However, I am still having issues with my "trigger finger" when it comes to using the card without thinking.  So I'm deciding to try using cash envelopes this month. 

I figured envelopes are much more convenient to carry around than mason jars... Once I have paid all of my bills online, I will go to the ATM and take out only enough money for the rest of my month's "necessities."  The cash will then be separated into each labeled envelope (with the monthly budget clearly stated), and once its gone, its gone.

Not spending money is difficult.  Very difficult.  Especially when I'm so used to spending it.  I know that when budgeting, they say its always best to go on a cash budget.  This way, I will feel the money leaving my hands, and I will be able to open any given envelope and see how I'm doing.

The big picture

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During the two weeks between deciding to participate in a year-long spending fast, and actually starting it, I really became aware of "the big picture."  I was at work one afternoon, and a co-worker and I decided to take our afternoon break.  We walked to the store on the corner for some iced coffees (no matter how hard I try, my homemade ones just don't taste as good - if you have a recipe, I'd love to hear it!).  I bought the large size, and took my sweet-treat to the cash register to pay.  It cost me $2.15, no biggie right?

Wrong! 

On average I bought some kind of iced coffee drink, whether it be from this store, Starbucks or where ever,  2-3 times per week.  That's nearly $350.00 each year for a little cup of coffee! 

The past two weeks since I started the Spending Fast, I've really been trying to keep this in mind.  Focus on the big picture.  So far it's been fairly easy.  There are times when I want to buy something, but I've been forcing myself to go through a thought process, and by the time that's done, the urge to spend has worn off...