Pushing the Envelope
By Skinny Farmer
We have mentioned it the past that this Blog won't just be about diet. Having said that, I realize that on many days I'm writing about what to eat and what not to eat.
Today isn't one of those days.
Today I'm going to discuss an idea that I have used with much success in the past and am starting to use again now. Maybe you will find it helpful too.
Thanksgiving is just behind us and Christmas is around the corner. Doesn't it seem like it was just the Holidays last year? Time seems to fly by.
How would you like to have money to spend on Thanksgiving and Christmas (or Hanukkah) next year and not have to wipe out your November and December paychecks?
There is a way, and I'm going to tell you about it. It works every time it is used. But you are going to want to use it right away.
The technique only requires one thing: Envelopes.
The ides is as simple as this: save some money from each of your paychecks from now until next Thanksgiving and you will have plenty of money to use when the Holidays roll around next year.
One important caveat: You must use cash.
I know, who does that? Everybody uses plastic to pay for stuff nowadays.
But you aren't if you want this technique to work properly.
Let me walk you through it.
I'm going to use Thanksgiving as an example:
Take a plain envelope and write Thanksgiving 2019 on the front of it (or whatever the next year is if you are reading this later on). I like to use a Sharpie to write it in big letters.
Decorate the envelope if you are so inclined.
Then let's say, for example, you and your spouse each get paid every two weeks. That is 26 paychecks per year each.
As soon as you get paid, go to the bank and withdraw a $5 bill. Put that $5 bill into the envelope. Your spouse does the same.
Repeat with each and every paycheck.
If you start right away, you will have 26 paychecks between now and next Thanksgiving.
And you will have $260 CASH in the envelope to spend on Thanksgiving dinner.
Believe me, you will not miss that $5.
But do it as soon as you get paid. Don't pay all your bills and shop and go out to eat and such before you do it because you might then think you don't have the $5 to spare. Pay yourself first.
If you are single, you might have to put more because you are the only one putting money in the envelope.
If you don't think $260 is enough for your Thanksgiving meal, then put $10 per paycheck each in the envelope. Then you will have $520.
Adjust accordingly. You get the idea.
Do the same thing for Christmas. Make a Christmas envelope. Figure out how much you want to spend and divide it up by the number of paychecks you will have between now and whatever holiday or event you are planning for and put that amount aside.
Did I mention that you need to use CASH?
Why is that? Let me tell you a little story.
I remember that when I was growing up, my mom used to save money for bills and things by putting cash in envelopes.
I, of course, was rebellious (who knew?). I wanted to be modern and sophisticated. I even read The Wall Street Journal no less.
First I tried using plastic. Charging the Holidays using credit cards. Hey, I would get cash back!
Boy was that DUMB. Nothing ends the holiday spirit quite like getting those credit card bills in January. Ugh!
So then I tried an advanced technique. I was so sophisticated that I knew what a sinking fund was. I knew that was what businesses use to set aside money for future large purchases such as putting a new roof on or equipment replacement.
I was going to use that. I set up a spreadsheet (a paper one, not on the computer) showing how much of each of my paychecks I was setting aside for the holidays. It worked great! The Holidays rolled around and I checked my spreadsheet and I had a nice amount of money to spend.
The only problem was, the money wasn't in the account. I had already spent it. It was frittered away on who-knows-what. So, not wanting to put Christmas on a Credit Card, I had to use my December paychecks to buy presents, which meant paying December bills was a hardship.
What a mess!
So that brings me full circle back to what my mom did. Now I put the money aside in cash. That way it doesn't get spent on silly stuff.
It is so exciting seeing the envelope get thicker with cash. It's almost as fun as watching the scale go down in the morning.
Won't you fritter away the cash, you ask. Nope. That is why you write Thanksgiving (or whatever) on the envelope. It is a reminder of what that money is for. It helps you avoid blowing it.
And, if, God forbid, a true emergency crops up, you have some cash sitting in an envelope that you can use.
Try it out. I think you will like it. It's fun.
And if the Skinny Farmer is full of it, and you do this and not like it, well you will wind up with an envelope full of cash.
You're welcome.
Until next time.
S.F.
We have mentioned it the past that this Blog won't just be about diet. Having said that, I realize that on many days I'm writing about what to eat and what not to eat.
Today isn't one of those days.
Today I'm going to discuss an idea that I have used with much success in the past and am starting to use again now. Maybe you will find it helpful too.
Thanksgiving is just behind us and Christmas is around the corner. Doesn't it seem like it was just the Holidays last year? Time seems to fly by.
How would you like to have money to spend on Thanksgiving and Christmas (or Hanukkah) next year and not have to wipe out your November and December paychecks?
There is a way, and I'm going to tell you about it. It works every time it is used. But you are going to want to use it right away.
The technique only requires one thing: Envelopes.
The ides is as simple as this: save some money from each of your paychecks from now until next Thanksgiving and you will have plenty of money to use when the Holidays roll around next year.
One important caveat: You must use cash.
I know, who does that? Everybody uses plastic to pay for stuff nowadays.
But you aren't if you want this technique to work properly.
Let me walk you through it.
I'm going to use Thanksgiving as an example:
Take a plain envelope and write Thanksgiving 2019 on the front of it (or whatever the next year is if you are reading this later on). I like to use a Sharpie to write it in big letters.
Decorate the envelope if you are so inclined.
Then let's say, for example, you and your spouse each get paid every two weeks. That is 26 paychecks per year each.
As soon as you get paid, go to the bank and withdraw a $5 bill. Put that $5 bill into the envelope. Your spouse does the same.
Repeat with each and every paycheck.
If you start right away, you will have 26 paychecks between now and next Thanksgiving.
And you will have $260 CASH in the envelope to spend on Thanksgiving dinner.
Believe me, you will not miss that $5.
But do it as soon as you get paid. Don't pay all your bills and shop and go out to eat and such before you do it because you might then think you don't have the $5 to spare. Pay yourself first.
If you are single, you might have to put more because you are the only one putting money in the envelope.
If you don't think $260 is enough for your Thanksgiving meal, then put $10 per paycheck each in the envelope. Then you will have $520.
Adjust accordingly. You get the idea.
Do the same thing for Christmas. Make a Christmas envelope. Figure out how much you want to spend and divide it up by the number of paychecks you will have between now and whatever holiday or event you are planning for and put that amount aside.
Did I mention that you need to use CASH?
Why is that? Let me tell you a little story.
I remember that when I was growing up, my mom used to save money for bills and things by putting cash in envelopes.
I, of course, was rebellious (who knew?). I wanted to be modern and sophisticated. I even read The Wall Street Journal no less.
First I tried using plastic. Charging the Holidays using credit cards. Hey, I would get cash back!
Boy was that DUMB. Nothing ends the holiday spirit quite like getting those credit card bills in January. Ugh!
So then I tried an advanced technique. I was so sophisticated that I knew what a sinking fund was. I knew that was what businesses use to set aside money for future large purchases such as putting a new roof on or equipment replacement.
I was going to use that. I set up a spreadsheet (a paper one, not on the computer) showing how much of each of my paychecks I was setting aside for the holidays. It worked great! The Holidays rolled around and I checked my spreadsheet and I had a nice amount of money to spend.
The only problem was, the money wasn't in the account. I had already spent it. It was frittered away on who-knows-what. So, not wanting to put Christmas on a Credit Card, I had to use my December paychecks to buy presents, which meant paying December bills was a hardship.
What a mess!
So that brings me full circle back to what my mom did. Now I put the money aside in cash. That way it doesn't get spent on silly stuff.
It is so exciting seeing the envelope get thicker with cash. It's almost as fun as watching the scale go down in the morning.
Won't you fritter away the cash, you ask. Nope. That is why you write Thanksgiving (or whatever) on the envelope. It is a reminder of what that money is for. It helps you avoid blowing it.
And, if, God forbid, a true emergency crops up, you have some cash sitting in an envelope that you can use.
Try it out. I think you will like it. It's fun.
And if the Skinny Farmer is full of it, and you do this and not like it, well you will wind up with an envelope full of cash.
You're welcome.
Until next time.
S.F.
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