How I got Myself out of Debt

Hello everyone !

So today I want to talk about saving money, paying your bills on time, and the system that worked for me.

A little about me, I’m a waitress in a small town, and I make my money daily, each shift and not weekly. Most of my money comes in cash and my paychecks aren’t really anything special.

So 6 months ago I was Behind on all my bills, and I just felt like I was drowning. It was like I was in an endless cycle and I didn’t know how to get out. Until finally one day I was on Pinterest and came across the Cash Envelope System.

What is my Cash Envelope System

Now of course there are more than one way of doing this particular type of savings method, but today I’m only talking about MY method that helped me!

**scroll to the end for a free printable **

So basically you have an Envelope ✉️ for each of your expenses that you budget out each month. You write the amount on the front and I like to put the due date as well. For my credit cards I put the payoff amount and goals. Now as I said before I make majority of my money in cash and not by a weekly paycheck. For me it’s hard to budget this way and the cash Envelope System is what saved me.

I have 10 Envelopes :

  • Gas/Electric
  • Phone
  • Rent
  • Insurance (car)
  • Groceries
  • Cable
  • Credit card
  • Baby
  • Savings
  • Extras
  • Now every night when I come home from work I sit down with that nights tips and consider the following:
    Necessity
    Due date
    Amount left for that bill.

Example:

Today is the 28th,

I choose 3 Envelopes I want to contribute to. How I decide is which are due first, how necessary that bill is, and how much I have left to fill. I don’t want to focus yet on bills not due for another few weeks.

Generally I try to put $40 I each Envelope. But, if I only need say $20 to finish one up, I would take that leftover $20 and put it toward my credit card. On nights that I make extra money, I’ll either put it into my savings, fill an extra envelope, or put extra towards a debt.

Why this System Works

The Dave Ramsey system is a one-size-fits-all method. You have to make the method fit you! Everyone is different. I tweaked the original method to fit my needs, so it works for me.

Why it works for me?

  1. My money is out of sight out of mind. Once it’s in the envelope, it’s tucked away, separated, and it doesn’t come out until it’s time to pay.
  1. It keeps me organized. You can’t keep track of anything with it in a big pile. You think you can, but you can’t.

Stops temptation

    . Referring back to #2 if all of your money is in one place then your going to be tempted to spend it.

Hopefully this system can help others! And remember to make it your own so that it works for you!

With this system I was able to finally able to get all of my bills paid On Time, I was able to Save Money, and I was able to finally start paying off some of this debt! Paying off debts doesn’t happen overnight! You just have to keep trying and keep saving. It’s been 6 months everything is on time and up to date, and I’ve paid off $2,000 in debt.

Here’s a free Printable to get you started

13 thoughts on “How I got Myself out of Debt

  1. John Aiwone says:

    This is quite an interesting method of saving. Great post!

    I currently have two savings account (a short-term and long-term/emergency fund account) where half of my pay from work goes into my short-term savings (e.g. holidays, gifts etc.) While I put £1 into my emergency fund account every day. Knowing the value of money and prioritising what you spend your money on is so key when it comes money management.

    Johnny | Johnny’s Traventures
    http://www.johnnystraventures.com

    Liked by 3 people

  2. Krazymommy18 says:

    And if you ever need help with the Envelope System, feel free to message me! I’ve been a waitress for 8 years now and have basically perfected this system, for myself of course. But I can do the best I can to help you create a DIY Envelope System that works FOR YOU!
    Twitter: https://mobile.twitter.com/Mommy18Krazy
    Email: KrazyMommy18@gmail.com

    P.s. you might have better luck DMing me on Twitter I only go on Email once a day 😊

    Liked by 2 people

    • Krazymommy18 says:

      That’s how I felt! Also having all my money in one big pile never worked. So I found that when I get home at night, dividing my tips as soon as I get home into Envelopes helped. I don’t see it all so it feels like you don’t have the money. Let me know how it goes for you!

      Liked by 2 people

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