I didn’t have a cash buffer when I started but it would have been better if I did. I had to move money around for the first month or so. If you don’t have the cash then you’ll need to spend as little as possible while you get started.
I love Simply Budgets, in fact dh just ordered the newer version (not the Debtbusters program) so he could install it on my new mac. I would have bought the original around 7-8 yrs I guess – I seem to have had it forever. I really do love the program (and am REALLY missing it at the moment).

Libby

Thanks so much for your help.

Lisa

I usually respond to questions directly but thought I’d share my answers here, in case it helps someone else.
Okay, the only money permanently in my bag is groceries and gifts. The other money stays home unless I need it. I’ve known for a few days I needed to get to the pet store so I took the little tub out to my bag for when I went there yesterday. I do still have my cash card so if I really get caught out I use that and then don’t withdraw that money the next week.
Online purchases. Yes, I make a few of them myself – just bought movie tickets yesterday. So next week I will deduct that from the entertainment money and transfer the amount to the credit card.
Things like my organic delivery, bills, etc are in my budget as being paid on credit card. The Simply Budgets program makes this very easy.
As to your mortgage. I thought like that about my credit card frequent flyer points, which is why I was so resistant to going to a cash budget. But I’m sure we’ve saved WAY MORE in cash than we would have earned in points. All I can suggest is that you give it a go – even for a couple of month, It is just my weekly variable spending money that come out – though at the moment I do have a few hundred dollars sitting in my tubs. Yes, I’m not earning any interest on it BUT I’m not putting things on credit card and getting more into debt. I really do love the freedom this system has given me. I’m not stressed about money and we have SAVINGS!!!

So what stays home and what goes out in your bag, and are you always shuffling to and fro?

And what about online purchases? I do some of my bulk buying, my organics order, gifts and other buying online… How do you work those electronic-by-necessity payments? I also pay all our bills online – phones, power, rates, rego, insurance, everything… I figure you still do that and this system handles the ‘everyday’ spending?

Oh, we also have the type of mortgage where it’s better to have every cent in the account to reduce the interest paid each month, but if it’s just spending money I guess the difference wouldn’t be too great… What do you think?

I have a couple of financial goals for 2009 and am looking into different budgeting methods at the moment. Thanks for sharing!

This is a good idea. I owe quite a bit of money and hoping to have it paid off by the end of 2009 which will make it a 3 year round trip to getting it sorted out. I think I need to write up an exel spreasheet to work everything out – is that how you started?