Hey everyone,

I just put together a how-to on building a cash allowance filer. What do you guys think? Anyone else have a system like this?

http://stackbacks.com/blog/2006/11/28/cash-allowance-file/

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Cash Allowance File

Being able to always have cash on hand can be a problem these days. It is quite common for every person person in a group of friends to be without cash. This can be a problem when paying a cover charge, parking, leaving tips and certain markets and restaurants. I first fixed this problem by creating a cash allowance, but now I?ve streamlined the process with a cash allowance file.

The cash allowance is used to budget cash for myself, maintaining the balance between using a debit card and using cash. To summarize?

What I?ve worked out is a cash allowance. Each week I allow myself $60 cash as part of my living expense. The rest stays in the account, coming out on the debit card. This allows me to consistently have cash if the need arrises, but still have money to make online purchases.

However, after starting this, I soon found I would use the cash up, and not have anymore immediately available for the next weeks allowance. I would inevitably soon run into a scenario where I needed cash and didn?t have any. So now, I?ve created a cash allowance file to eliminate the infrequent trips to the ATM.

Allowance Setup

The simple setup requires only 4 common office items.

* 1 envelope
* 10 paper clips
* 10 index cards
* 10 weeks cash allowance

Step 1 - Get Cash

Visit the ATM and withdraw enough cash to cover your allowance for the next 10 weeks.

Step 2 - Create an Allowance Day

Decide on a day of the week you will replenish your allowance. I chose Monday because I often need the money during the week, but want it on the weekend.

Step 3 - Date the Cards

Fill out the index cards with the dates of the next 10 allowance days. You could easily skip this step, or use a number system for weeks 1 thru 10. However, I find the date to be a good mental cue that I am not allowed to spend this money till the date written on the card.

Step 4 - Organize the Cash

Paper clip the money to the index card and place the index cards in the envelope in order. I fold the cash in half before clipping as it makes a better hold and a more compact package.

Using and Maintaining the Allowance File

To use the cash allowance file, simply take out the first card when the date has been reached. Refill your wallet and throw away the card. If you have cash left over you can do whatever you want with it. I recommend saving it in a jar and buying something nice, or replacing an allowance when you have enough accumulated.

To maintain the allowance file, simply make another trip to the ATM when you have 5 or less allowances left. That gives you over a month to make it. That should be enough time for even the laziest budgeter.

Improvements

If you want to get fancy, the money could easily go in a tickler file. The system could also be upgraded to use a plastic 3 x 5 index card filer or an expandable coupon organizer. If you want protect your cash throw the allowance file into a small safe.

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-Greg