It works well for us and here is why:
Any "extra money" gets transferred out of our checking account immediately and is put into our "mudflap" account. When I see $1.50 in the checkbook I tend to think that I probably shouldn't spend any money ☻.For example, we were able to buy dog food on sale last week and saved $2.00. This $2.00 was transferred into savings. If you can find $2.00 every week that's $104 a year, if it doesn't "get lost".
Mudflap = random word my husband came up with when he couldn't remember the term Gazelle (from Dave Ramsey)
Posts you might be interested in regarding our journey following Dave Ramsey:
Check out more Frugal Friday tips at LifeAsMom.
I like the "mudflap" idea. :)
ReplyDeleteI love the term "mudflap." It's catchy.
ReplyDeleteI clicked through from a comment of yours at Money Saving Mom and wanted to say thank you for encouraging moms to focus of the true treasure of their family.
Blessings :)
While he comes up with new terms quite frequently, that's the one that we use consistently around here. Always makes me laugh!
ReplyDeleteThanks Stacy - I was a little afraid that I stepped on toes, but I feel very strongly about women who just do way too much and can't enjoy their babies!!!
I do something similar - I use Quicken and have savings goals set up. I transfer "extra" money to those savings goals (without transferring it out of our bank account) so that the checking balance available in Quicken is lower than reality, thus I'm not tempted to spend it. I did have to show my husband how it works so he doesn't freak out when he opens Quicken and sees that the checking balance is $100.
ReplyDeleteAnon - great idea!
ReplyDeleteI do something like this too with coupons. I do not use a lot of coupons because I do not buy much processed food etc. When I do find a coupon that I can use and save a few dollars or even a few cents I will move the money I 'saved' to our savings account for our vacation. Over a year's time this can add up.
ReplyDeleteRoxie700 - great idea!
ReplyDelete