Your Cash Budget

Step 6:

Now you go to the bank!! You will do this every month to take out the money you need for the month. You could also do it by week if you so wish.

You need to take out your grocery money and your weekly spending money.

Suggestions:
- Be strict with yourself - hide your credit and debit cards (freeze them in ice if you have to!)

- Divide your monthly grocery and spending budget into weeks. For example if your grocery budget is $400 and there are 4 weeks in the month - you get $100 a week for groceries. I learned this by default when we first began this Cash budget. The first couple months we would get to the last week and wonder where all the money went. Separating it into weeks keeps us from running short at the end of the month.

- As you become more aware of your spending habits and probably begin to spend less (it's amazing how much less willing we are to let go of actual cash) you may wind up having some grocery or weekly money left over. YEAH for you!!! This is yours to do with what you want - put in savings, put towards your goal, stash away for a day when you really feel like shopping or treating yourself.

- Stick with it!!! It will seem painful at first - but after a few months you will realize the stress is gone and you feel a new found freedom with your money. It's a really good feeling to know you are not spending more than you have and you're not living paycheck to paycheck - which happens to even the wealthiest people.

Good luck and if you have any stumbling blocks, suggestions, questions - please let me know!