Credit cards make it so easy to spend what I don’t have.
That’s why I like the idea of Dave Ramsey’s Envelope System.
One problem – I don’t like the idea of cash. What I’m out to do is turn that system electronic.
Here’s the plan: divvy up every paycheck between each of our several bank accounts, each for a specific budget. Then spend only what’s in the corresponding account.
For example, if I need a new flannel shirt, I’d go to a local thrift store or visit an online thrift store – I prefer to buy good-quality used stuff. Before I buy it with my credit card, I’d open up my Mint app to see how much money is in the account designated “Clothing Fund.”
Only $7 in that account and the shirt is $10? No go. Put it back on the rack. And I can’t steal from another account.
This does require several accounts between a few different banks, but I’m totally okay with that. I’ll let you know how it goes.