Free Envelope Budgeting System

We've all heard the financial gurus tell you about the benefits of cash. From Suze Orman to Dave Ramsey, cash is considered king whenever you are trying to control your budget. Each person explains a proprietary system to do this. I want to give you a cash management system for free.

 

I love to use cash because there is no late payments or interest. Its finite (which can be a double edged sword) and you can physically see how much is left in your personal budget. It pains me to break a 100 for a 35 dollar transaction. Since it is normal for humans to avoid pain, I tend to really think hard about breaking large bills for transactions.

 

Lets first debunk some common issues why people do not use cash. Whenever I think about it, it really boils down to two main issues against the use of cash.

 

Cash is unsafe, or I need a credit card for something something.

 

Lets discuss "Cash is unsafe". You may hear this rephrased as: "Cash can be stolen, lost, you can be mugged, etc..."

 

This is true. You can be mugged, cash be lost, a wallet stolen. Also a meteor. could crash on your head. I'm not denying that this cannot happen, but basic common sense can prevent many of these issues; however, let me tell you this. If you lose your cash, you can be out a couple hundred dollars (if you decide to carry that much).

 

But what is worse? Losing a couple bucks or Identity Theft? If you didn't know. The average amount lost because of Identity theft is $5,000. Not to mention the months it takes to fight collectors and to repair your credit. Yes, cash has risks, but compared to the cost of Identity theft, its a drop in the bucket.

 

The second most common excuse not to use cash is that you need a credit card for:

• Car rentals
• Credit rating
• Online Transactions
• Security (which deals with Identity Theft)
• Ease
• Online tracking of spending.
• Other reasons.

Unlike some people. I don't believe in getting rid of all credit cards. I have two I use and 2 I keep open just for credit ratings. I budget out what I plan to spend and if that needs a credit card. I automatically set aside in cash that money, so when I do swipe the card, I can pay it in full. This works well when coupled with a good rewards card.

 

Enough being a cash apologetic. Lets talk about the system:

 

The CIK System (Cash Is King):

 

In our checking account we have a 100 dollar buffer, money to cover the months bills and fuel cost (my wife doesn't like paying cash at the gas station), and we deposit from our cash pile (more like a mole hill) whenever I use the credit card. The rest of our expenses is withdrawn once a week in cash at the ATM, and that is what we use for the week. This allows us to keep on budget while not having to give up our auto bill pay. We place the cash in envelopes with the budget category on the outside and amount on the outside (we use Dave Ramsey's envelope system for this). Just like a check register, we record transactions. Once the money is gone, its done. No running to the ATM or swiping a card. In the rare event that we don't have enough cash to pay for something (like at a restaurant) we swipe then afterwards deposit the cash ASAP.

 

Doing this method my wife and I save $300 dollars a month and here is how we did it in nine steps:

1. Total all the money you spend in a month.
2. Subtract all bills that are deducted automatically or could be paid with Auto Bill Pay.
3. Once you have the total divide it by 4 (4 weeks in a month).
4. KEY PART: Take the weekly total and subtract 10%. Round down to the next smallest domination your ATM will issue*.
5. Distribute cash to envelopes.
6. Repeat once a week.
7. Every month try to increase the 10% in increments of 5. I managed to get my family to 20%. You can almost make this a game. Adjust as needed, but always aim for at least 10%.
8. Your checking account should have a $100 dollar buffer*, money to cover fuel cost if you do not want to use cash, and money to cover your bills.

Benefits of Using a Time Clock at You Business

Why should you buy a time clock?

Time clocks provide a great way to show job costing, and help improve the accuracy of your payroll. Every company, from the small shop to the large business, needs to have accurate time records. These time records can prevent labor disputes and help improve your bottom line. Below are 5 examples why you need to have a time clock at your business.

1. Time Clocks Allow Precise Tracking of Hours

With no time clock, the employee is responsible to track their time.This method can easily be abused, and even if there is no time theft, the employee may incorrectly estimate hours worked. Estimating the beginning and end of break is where most mistakes occur, since most people take short breaks that are paid and longer breaks that are not. Without a time clock, figuring out which is which can lead to a lot of errors and cost a company thousands of dollars

2. Time Clocks Clearly Define When an Employee Begins and Ends Work

At one point or another, most employees find themselves heading out the door right when something requires their attention. Someone asks a question; some piece of equipment breaks; or an important client finally calls back. The employee can either stay late to deal with the issue, and possibly not get paid, or the employee can leave and risk being perceived as irresponsible. A time clock resolves the issue by making it clear whether or not the employee is actually still working during standard break or lunch times. Anyone who works overtime gets paid for it.

3. Time Clocks Make Payroll Processing Easier

The payroll clock records all payroll information and transmits it to a central file, eliminating transcription errors and delays. Not only does this reduce the workload for payroll staff who must physically do the transcribing with manual clocks, it reduces the hassle of dealing with employee complaints when errors in payroll do occur because of manual transcription. Digital transcription eliminates all these burdens.

4. Time Clocks Can Enforce Company Policy

Time clocks can be programmed with the schedule of each employee and can call a manager if an employee attempts to clock in late or if an employee has not taken a lunch by the end of an eight-hour shift. This helps managers discipline tardy employees and encourage hard workers to take breaks.

5. A Biometric Time Clock prevents "Buddy Punching"

RFID time clocks, pins, magnetic card swipes, can all be abused to allow another employee to punch in another employee. The time lost when another employee "buddy punches" another is around 10 minutes. This may seem like a small number, however, if you multiply the theft of 10 minutes by 5 days a week times 52 weeks this amount can easily be over tens of thousands of dollars. A biometric time clock stops this type of theft.