Over the holiday season I read a book called:
It’s Your Money: Becoming a Woman Of Independent Means by Gail Vaz-Oxlade.
One of the tips she gave, is to physically handle your money. Get back in touch with the paper. I’ve heard this tip before, so it’s not anything new but I’d never really tried to put it into action. It’s so easy to swipe your debit card for purchases. Money just becomes numbers and dots on a screen. Unless you have many different bank accounts for all money allocations (which she also recommends) if you are like me, you are constantly doing the sums in your head to figure out what still needs to come out of that amount in your account.
But this year I’ve got my lil’ envelope plan going on!
So, I set up direct debits for as many of my expenses as I could, so BOOM! they are just whisked away on payday with no chance to spend. My holiday savings go direct to my savings account.
Then I withdraw a lump sum of cash which includes:
- Spending money for both weeks (I get paid fortnightly)
- Buffer fund
- Any other ad hoc expenses: ie, at the moment I am saving for my trip to NZ
Then I allocate the cash into the appropriate envelope and I’m done!
So really, once I withdraw that cash, there is no reason for me to do the sums on what is left in my account and I actually handle the money. Plus I don’t get hit with the $2.50 withdrawel fee from ATM’s when I use other banks to withdraw cash. Man I HATE those fees!
All that remains in my account as a fluctuating balance is the money for groceries and regular loan repayment as that is deducted at the end of each month.
And…I’m going really old school with a piggy bank!
Well, it’s more like a piggy box. That doesn’t have pigs on it. It has elephants. But I digress…
I am trying to put in $2 coins and $5 notes into the box – not every single $5 note as I would go through cash pretty quick! But all my $2 coins.
This year is about seeing the money I spend!
Do you have a great tip on how you allocate your funds?