In our family, we follow a budget. EVERY Friday we hit the bank and take out the cash that we need for the week. I’ve heard of the Envelope method of carrying cash, but have always found the envelopes too bulky.
That’s why I started clipping my cash. It’s easy. It’s fast. It’s fun.
There are some things we use our debit cards for. Such as gas. It’s too inconvenient to walk in to the gas station to pay cash. It’s easier to swipe a card at the pump, and we don’t have trouble sticking to our budget in this area.
We group our cash into three main categories.
1.) There’s a MAD MONEY clip for spending during the week. Such as unplanned lunch out with co-workers, or a few dollars to grab a bag of chips from a vending machine. This is basically the shopping category.
2.) The RED clip is grocery store cash. When you pay for food with cash, you buy less of it. Plus it’s plain fun to hand a wad of cash to the cashier. I don’t think they see enough of the green stuff, to be honest.
3.) The Yellow Arrow, and third category, is my clothing budget for the week. If I don’t spend it, then I can add it to next week’s cash. More often than not this cash is used at Goodwill. I like how I can FILL a cart with clothes there, and still have 75% of my budget left. It rocks.
You can pick up some colorful, patterned clips at Target. I’ve just placed stickers on mine to differentiate them. But you can get as crazy creative with yours as you like, or simply write LETTERS with permanent marker on them.
It’s not hard to manage your cash clip system,. All you need to do is start.