Dave Ramsey-Cash only system

[2K2 LS1]

Who all has done this or currently is doing this? I want to try an altered version of this pretty soon. I want to put my wife on a cash only system and eliminate the constant need of using a debit card and forgetting about what you are actually spending.

What are some of the pros and cons? Tips and suggestions from those that have recently switched or been on the cash only program for a while?

[ELVIS]

IBTDD

god bless.

[David]

What is this system?

[black2002ls]

Who all has done this or currently is doing this? I want to try an altered version of this pretty soon. I want to put my wife on a cash only system and eliminate the constant need of using a debit card and forgetting about what you are actually spending.

What are some of the pros and cons? Tips and suggestions from those that have recently switched or been on the cash only program for a while?

Make her use a ledger. If she doesn't take the debit card from her.

[Geor!]

If you're wife is ringing up stuff at Nordstrom's all willy nilly, you've got bigger problems that a cash only system won't fix.

[2K2 LS1]

Instead of using a debit/credit card to pay for everything; you use cash. You pretty much use multiple envelopes. One for each major bill, and one for leisure money, one for gas, one for food, etc. Pretty much makes you more accountable/responsible for what you are spending.

I am going to alter it a bit and instead of paying cash or money orders for bills, I will put it in a checking account that is only used for monthly bills and doesn't have a debit/credit card associated it.

[Denny]

I have yet to see any cons, other than having physical cash on hand. The major pro is that you self-manage your money a lot better. You're more aware of your financial status. No one knows exactly how much you have. There is a lot of freedom to it. I have also managed to keep the bulk of my wealth out of this declining dollar and just get what I need in order to pay for expenses.

Most of the world's money is wrapped up in worthless paper fiat currencies, contracts, stocks, bonds, loans, etc... Most of that isn't even physical paper. It's electronic. FUCK THAT!

I've hedged against both in what I feel is a responsible move. This way, I've become more responsible with my spending AND my holdings.

[mustangguy289]

So your wife is not responsible enough to tell you when she uses the debit card? My wife is good about putting the receipts on the computer desk so that I see them when I balance the checkbook.

I have a habit of balancing it everynight for that day's spending and i just say: "Hey, did you spend any money today"?

We hardly ever carry cash and we don't use credit cards. Carrying cash to me is a bad thing because you can never remember where it went. We created a budjet together and using the debit card and tracking daily expenses helps us follow it. We are about 2 months from being CC debt free and we have been doing this since June.

[Binky]

Are you talking about the envelopes?

Basically create a budget, then put cash into named envelopes for the budget catagories. When it's gone it's gone - no refills.

I use a debit card, but I track my purchases at the end of the day or week (depending) and then account for it. I don't like a monthly budget, it's too big and small shit gets through. I know my daily limit ($20) and keep myself under it - which then keeps me under budget.

[David]

Sounds like a hassle for something anyone could be capable of just by managing their account.

[2K2 LS1]

Not trying to punish my wife by any means. She contributes just as much as I do. Hell she makes more than I do some years. :blush:

I just want to have a way to budget more efficiently. Her friends went through a class based off of the Dave Ramsey book and lessons. They switched to the cash/envelope program and it is now second nature, and they are more responsible with their money and at the end of the month have alot more money left over. I want to go from feeling like check to check, which we aren't; but it sometimes feels that way, to feeling more in control of our finances.

I pay cash for my vehicles now. Paid off second mortgage. And now want to free up money that may be squandered, and put it into a savings account.

[black2002ls]

I've read the books, told myself I was going to get on the program. When in reality all that I did was create something that works for me. In the last 3 months I've paid close to 2000 on my truck and personal loan, those will both be paid off mid January I believe. I pretty much pay for everything in cash.

[Denny]

Sounds like a hassle for something anyone could be capable of just by managing their account.

Some people need a little more help than others. make it a hassle and it might make you think twice about spending frivolously.

[Lone Sailor]

Sounds like a good way to set yourself up to be robbed when someone sees you pulling out cash from an envelope/multiple envelopes.

[Vertnut]

Our church (and apparently a lot of others) put on this seminar for free. Pretty neat course, but not for everyone. He's hardcore, and feels like until you are RICH, you should not ever buy a new car. We follow several of his idea's (I don't buy new cars and I pay cash for what I buy), and we're down to one small credit card balance. We've put both kids through college out of pocket, except for one year of student loans due to my business not being great. I recommend using at least some of his idea's. For other's, it may not be realistic to do at first.