Increase Your Income by Using a Takeout Budget

There is one thing this fall that has helped me alleviate financial stress like nothing else.

Our monthly income hasn't increased but thanks to a new technique we're using, it feels like it has. Because we have more money each month now.

Some people call it the Envelope Method. I prefer to think of it as a budget on the go, or a takeout budget, if you will.

It's one thing to have a budget all written out on paper. It sits there looking at you almost mockingly. It's a wish list and it generates, "I hope we have enough money for all these expenses this month" panic attacks.

But when you take that budget and break out all the expenses you make at stores, situations where you would normally whip out a debit or credit card, that's where it starts to get exciting.

How much do you normally spend per week on groceries? If you don't know, track your expenses for a month and find out.

During each payday, take that amount out of the ATM in cash. Do the same for gas and any other purchases you make at stores on a regular basis, like clothing.

Put that money in a separate envelope for each expense and stash them in your purse or somewhere where they will be easily accessible to you. Then when you are at stores you use this cash for purchases.

Since implementing this system I no longer worry if the debit/credit card will decline.

I always have money leftover at the end of the week and put that in our savings account.

I no longer spend money mindlessly. If it's two days before payday and there is still $50 left in the groceries envelope it motivates me to spend wisely so that there will be money left to deposit in savings.

It's also fun to use cash. It's pleasant to hold it, count it, smell it. It never gives you an "insufficient funds" error at the register.

Our income is the same and we are still in debt but I no longer feel despair because this one thing has helped me feel more in control of our financial situation. I have more energy now to devote to finding ways to increase our income.

Simply knowing how much our expenditures are each month is half the battle. The other half is to use the takeout budget.

Sorry, Mastercard. For everything else there's cash

For more tips for getting out of debt visit www.debt-free-mom.com. Anita Ashland is the co-owner of www.debt-free-mom and also works as a freelance copywriter and online bookseller.