The Saturday weekend review #37: Stashing cash, is it worth it?

Only You Know What’s Best For Your Situation I think stashing cash is worth it but whether people have the cash to stash is another story. I don’t think it’s hard to believe that many people do have about $10,000 stashed away for a rainy day but on the other hand I can completely agree that many people don’t have the money to do that. Debt for Canadians is a big problem and in reading this article on Yahoo about a survey conducted by the Bank of Montreal it’s no surprise that the writer is saying that most people don’t have the means to sock away 3-6 months of income just in case an emergency would come up. You know last week we had an emergency where I managed to spill liquid on my computer. Since I blog full-time my computer is a huge necessity in our household and that to me was an emergency where I was thankful that we had money in the bank to cover. We didn’t just hide away the money overnight either and I don’t think any personal finance blogger I’ve come across who talks about emergency savings says it has to be done in […]

Financially Savvy Teen Budgets Cash Using The Envelope System!

Cash and Envelopes, that’s my Budget! From the time I was about 5 years old my parents gave me an allowance. I think that I got $3 each week. I remember having three envelopes and my parents teaching me I needed to put some money in each cash envelope category. My envelopes were labelled savings, spending, and giving. I had three dollars and three envelopes so my decision was pretty clear. The Envelope System Fast forward about twelve years and I am still using the envelope system today. I now have six envelopes titled: spending, church, clothes, college, car and retirement. How Do You Get Started Using The Envelope System? I’m so glad you asked! The cash envelope system really is very simple. First, you need to decide what areas you most need to control spending and where it is reasonable to use a cash only system. My mom, for example, has used the envelope system in the past for spending, eating out, and groceries because those were the areas where she wanted to be most careful with managing her money. Once you decide which ‘categories’ you want to use, get an envelope and label it. We had some red envelopes left over from Christmas […]

Is Budget Failure Your Own Fault?

An acquaintance of mine said to me once that “Budget failure is your own fault” when I asked why failure rates were so high amongst some people who try to use a budget then scrap the idea. I’m not so sure how much I agree with him but to a certain extent it’s not the budget that fails, it’s the operator of the budget and circumstances that surround it. It’s no surprise that some people have no problem spending more than they earn but they are first to challenge all the reasons why they can’t get a second job or earn extra income to pay down consumer debts. Then again anyone would agree that not much elbow grease is needed to spend money as opposed to earning it. When Cindy shared her story with us at CBB about how she changed her life after turning to credit cards because she couldn’t make ends meet she says, “it’s the one thing she wishes she had never done”. The greatest success for her was to budget and find a way to earn extra money working from home by making jewellery instead of giving up. Failure Is Scary Budget failure scares us a bit […]