Cash budget

Don and I just redid our budget. We're using the cash, or envelope, method to make sure we don't overspend. While Don and I are really good about not using credit, we're pretty bad about not saving much. It's almost like since we have all these small children around, we figure we must be pretty young! The truth of the matter is that Don has only another 20 years or so before retirement, so we need to get on the ball in a serious way.

While our budget is semi-spartan, we do have everything we need, PLUS a nice long-term savings amount and a vacation account! We want to go back to Disneyland when Nick is Jordyn's age : )

The concept is simple enough: get cash each week for your variable expenses, like groceries, gasoline, clothing, entertainment, etc. Store it in labeled envelopes or a coupon organizer, like this one:

When you spend money out of that category, write it down and subtract it from the balance. When you're down to zero, stop spending!

Because we have a LOT of change here in Canada, I have a mason jar for our loose change. We round everything up to the nearest $5 and put the rest in the jar. This is our Christmas fund.

Yes, it's a pain in the butt. But it's nice to know that you're living well within your means and the future is looking much brighter!