Decide To Use a “Cash Only” System

For next month, I have adopted the “envelope” system– where I allot a certain amount of cash to envelopes earmarked for different categories such as entertainment, transportation, food, and “unexpected” for the month. For example, I may put aside $100 in the “entertainment” envelope. It is my responsibility to spread that entertainment money out for the month. If I exhaust the money for entertainment by the 15th of the month, then I have to find free alternatives for entertainment.

Question Every Purchase In Its Ability To Help You Reach Your Goals

My husband and I have a “magic” number for how much we are planning to save for our short-term and long-term financial goals. Sometimes when your goal seems so far away, you do not necessarily see the harm in a little purchase here, a little purchase along the way. But the truth is, the more spending you do on unnecessary items, the longer it takes for you to reach your goal to buy or acquire what you REALLY want. So, I have had to ask, “Will buying_________ help us get to  $20K sooner or later? Do I really love____________ or it is something that I just like? What am I really feeling right now? Why do I want to buy this item right now? What would happen if I waited two days? Would I feel the same way?

BMWK: How are you tackling your credit card spending? Which of these strategies will you use? Any new strategies to add?