Originally Posted by ltcdfancher (Post 2397625)

Hi,
My 40 year-old daughter started cash-stuffing recently. For those that don’t know, cash stuffing involves setting aside cash in marked envelopes for different spending categories and only spending what you’ve allocated each pay period.

I am applauding her efforts, of course. Any method that works for her is better than relying on hope that there will be money left at the end of the month.

She remarked to me the other day, “I’ve been paid nearly the same year-on-year, but I’ve never been this flush with ‘extra’ money.”

My reply was that she wasn’t leaking money out of her debit/credit card. Going to the grocery with $50 in cash forces her to be more diligent in what she’s buying.

What other words of encouragement could I use to keep her motivated on her journey? She is contributing to her company’s 401K, she has a Roth account, and a taxable brokerage account. She will heed some of her father’s advice.

Originally Posted by ltcdfancher (Post 2397625)

Hi,
My 40 year-old daughter started cash-stuffing recently. For those that don’t know, cash stuffing involves setting aside cash in marked envelopes for different spending categories and only spending what you’ve allocated each pay period.

I am applauding her efforts, of course. Any method that works for her is better than relying on hope that there will be money left at the end of the month.

She remarked to me the other day, “I’ve been paid nearly the same year-on-year, but I’ve never been this flush with ‘extra’ money.”

My reply was that she wasn’t leaking money out of her debit/credit card. Going to the grocery with $50 in cash forces her to be more diligent in what she’s buying.

What other words of encouragement could I use to keep her motivated on her journey? She is contributing to her company’s 401K, she has a Roth account, and a taxable brokerage account. She will heed some of her father’s advice.

Originally Posted by FredMitchell (Post 2397836)

It might be better to just set up automatic deposits from her paycheck into savings and investment accounts. Also, automatic payments with legitimate billers like utilities, her credit card should be always paid off in full. Using cash should be rare. Then she can look back at accounts and compare to what she feels is proper and within her "budget", without actually going to the trouble to set one up. She can also use Bill Pay from her bank account to pay directly from her phone or computer so she does not need to use checks, buy postage stamps, and mail payments herself.

Originally Posted by FredMitchell (Post 2397836)

Give her a copy of "The Automatic Millionaire", by David Bach. With the exception of some of the brokerage firms in there, it is loaded with good and still valuable advice. You can probably get a copy for less than $10 from Amazon. Cheap enough to get yourself a copy, too.

Originally Posted by Joe C. (Post 2397864)

We used "budget envelopes" over 50 years ago. Back then, you could buy a spiral envelope book that used envelopes instead of pages. Label each envelope for different expenses, and put the allocated money in.
I'd love to find them in stores like Staples or a Dollar Store so I could give them to my adult children to help with their "financial discipline".

Originally Posted by ltcdfancher (Post 2397625)

Hi,
My 40 year-old daughter started cash-stuffing recently. For those that don’t know, cash stuffing involves setting aside cash in marked envelopes for different spending categories and only spending what you’ve allocated each pay period.

I am applauding her efforts, of course. Any method that works for her is better than relying on hope that there will be money left at the end of the month.

She remarked to me the other day, “I’ve been paid nearly the same year-on-year, but I’ve never been this flush with ‘extra’ money.”

My reply was that she wasn’t leaking money out of her debit/credit card. Going to the grocery with $50 in cash forces her to be more diligent in what she’s buying.

What other words of encouragement could I use to keep her motivated on her journey? She is contributing to her company’s 401K, she has a Roth account, and a taxable brokerage account. She will heed some of her father’s advice.

Originally Posted by SeaCros (Post 2397841)

Things like this should really be taught in school instead of all the “math tricks” being taught these days. They should also teach about debt and credit cards but instead they want to let kids become dependent on credit so they think it’s free money.
I applaud your daughter ability to heed her father’s advice.

Originally Posted by nmgirardot (Post 2398040)

She's following the Dave Ramsey method as we have been doing for the last 15 years. We have only good things to say. It changed our financial mindset so much that I ended up being a Financial Peace coordinator for 5 years. Our only regret is that we that we didn't start sooner.