Frugal finances and the Housekeeping Purse

Hello Friends,

First of all, a big hello to everyone who has visited the FHW in the last couple of days, especially the Frugal Hill Wayers (you know who you are!) and to Piglet, Jenny2, Anne and Ben for leaving your comments – it’s lovely to hear from you.

I’m working on being more organised with my finances at the moment and this month I’m trying out an idea which I’ve come across in various forms, but which seems to work for quite a large number of people.

The idea is that at the beginning of the week you take the amount of cash you need out of the bank and that’s it – no going back, you make it last.  You can divide it up into categories such as food, school dinners, bus fares.  Some people put the amount for each category into a separate envelope, then just take out what they need when they need it.

My grandparents had a variation of this when I was growing up – they had ‘the Housekeeping Purse’ which contained what they needed for the week.  I remember that the money for our school bus fares always came out of this purse.  I’m trying out using two purses: one just for groceries, and one for everything else. 

The idea is that using cash makes you think more about what you are spending – you don’t have the feeling of spending money when you use a card.  It will be interesting to see if I spend less this week.

Have you tried out a version of the envelope system?  If so, how did you get on?

Until next time, Tawney x

Comments

Frugal finances and the Housekeeping Purse — 3 Comments

  1. I have various tins and each week put in set amounts, i.e. fares, school meals, window cleaner, church offering, birthday cards and presents, hair cuts. If at the end of the month there is a little bit left over – and it is only a little bit – I use it for a treat, usually something from a charity shop.

    Keep going – you are doing fine.

  2. I’ve been paying cash for almost everything for about six months now – it really does make you think before you spend.

    I am using the envelope savings method at the moment – one envelope for a school residential trip that my youngest is off to in May and another envelope for our own trip to the Lakes in October. I put the envelopes right out of reach so if I even think about raiding them I have to drag a chair over to the shelves, scramble up and move books out of the way before I can get to them.

    We have a mug on one of the shelves that all our loose change goes into and this is used for school lunches and bus fares.

    I have definitely spent less over the last six months by using cash more.

    Good luck.