How to Save Money by Living on Cash

admin — Tue, 03 Mar 2009 11:05:28 +0000

Did you know that you can save hundreds of dollars per month when you make the decision to decrease and control your variable expenses by living on cash? Living on cash allows the consumer to reduce their expenses as a controlled amount is withdrawn from the bank account for variable expenses and these funds are used to live on throughout the week. This process can be continued week after week.

Here are the steps that you can use to cut your costs and live on cash:

1.Â Â Â Â Â Â Make a list of your variable expenses and be sure that you are living within your means. When you are living within your means the income and expenses will be equal, or the expenses are less than the income. These variable expenses are than delegated to different categories.

2.Â Â Â Â Â Â Create an envelope for each of the categories that are listed. Put the cash for that week in each envelope and you are looking at your budget. For each category, this is the amount that you can spend each month.

3.Â Â Â Â Â Â When you spend money from the envelopes, be sure to write on the back side or the front side of the envelope what this money has been spent on. This can help the consumer to be aware of what is being spent.

4.Â Â Â Â Â Â Continue this process through the week and do not withdraw any money from the bank. It is important for the consumer to learn that they must get to the end of the week before getting to the end of the money in the envelope.

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How to Save Money by Living on Cash