40-Day Challenge Day 14

Get envelopes and label one for each of  your holiday spending categories. Label  an envelope for each person on your list,  too. Place the planned amount of cash in  each envelope. Spend from the  envelopes. And as you make purchases, replace cash spent with receipts so you’ll know where that envelope’s money went. And when the money’s gone, time to stop spending. That’s it for that category or person whose name is on the envelope.

Listen …

The envelope system is nothing new. Who knows who came up with it? I didn’t read about it, no one told me what it is. Did I invent it? I’m sure not! It’s 99% common sense, 1% genius. What I know is that it was a catalyst back in 1984 that would go on to change my life forever. Such a simple tactic but so enlightening.

It’s difficult to argue with an envelope. Its content—or lack thereof—is right there in your face. Either you have it, or you don’t. And when it’s gone—an empty envelope tells the truth. And that is the last thing any bank or credit card issuer ever want—for us to see their financial products in such black-and-white terms.

An envelope with cash will never lie to you, it will never sugarcoat the truth. It will never nudge you to buy now and pay later. It will never suggest that you deserve what you cannot pay for. It will never allow you to spend beyond your ability to pay.