Want to go back to a cash system...

[Trixie007]

As mentioned in my blog today, we have been spending down our almost 9k Federal tax refund and I am finding it to be very stressful to be using the debit card! For over a year we have been using cash and the envelope system for everything except regular bills, but now with this tax refund we have been using the debit card so we can show where the money went. I can't believe how stressful that has been, it feels dangerous and scary to not be using cash. So, I have money set aside in the bank account for auto repairs not yet done, and I still have some money ear-marked for stocking up on groceries and I want to use that up this week so it's all confined to my Feb bank statement. I have really been having a mental block on stocking up, it feels so reckless to go buying a whole bunch of non-perishables! Weird I know. Once I do shopping this week, that will be the end of stocking up, back to regular budgeting going into the month of March.

My question - the standard allowed for our area for a household of 4 for groceries/personal care is $1,370/month. Do you think there would be a problem if in March I start taking out $315/week in cash from the bank for our grocery/pers care, etc. and go back to my envelope system? We have started saving receipts, but it does seem like about 15% of them don't make it home... Still, we would be taking out the amount of the standard for our area, and would be able to account for most of the cash... What do you guys think?

[mkuki]

I have been using a spreadsheet to track spending and keeping the reciepts for cash purchases.

I dont think using a debit card is wrong...It's not a credit card, and it's not like u r going to include it in the filing.

Another plan I have is to buy MS money, and then download all the transactions since I got the new acct (mid Dec) and use the reciepts to correctly identify where I spent the money...2-4 months from now, I will have a summary for the attorney & trustee, and use that report to show how I spent the refund.

[mintz]

Trixie, are you wanting to make sure you spend your cash before you file?

[Trixie007]

I'm not worried about using the debit card for the BK purposes - I'm just uncomfortable using it, period (except for gas). I have become used to having my envelopes with cash for different categories - there's no question of, do I have money to buy this? Am I spending too much on this or that? It makes it simple, no-brainer, and eliminates confusion of two people in the home using a debit card!

I'm also not trying to use up all our money before filing - I've given up on being able to do that! Our tax refunds are just too large - and now it looks like we'll get our $2,750 from CA refund in mid-March (maybe). That's about 11,600 combined in refunds - way too much to reasonably spend! Whatever doesn't get spent and can't be exempted will just have to go to the Trustee.

My concern really is if it would be okay to pull out the $315/wk - which works out to $1,365/mo - in cash and use it for our normal expenses: groceries, hair cuts, personal care, light entertainment budget, DS's allowance, etc. $1,370 is the standard amount for these expenses allowed in our area according to the means test.

[deadbroke99]

Must be nice to have those problems..lol

[okiemom2008]

I'm not worried about using the debit card for the BK purposes - I'm just uncomfortable using it, period (except for gas). I have become used to having my envelopes with cash for different categories - there's no question of, do I have money to buy this? Am I spending too much on this or that? It makes it simple, no-brainer, and eliminates confusion of two people in the home using a debit card!

I'm also not trying to use up all our money before filing - I've given up on being able to do that! Our tax refunds are just too large - and now it looks like we'll get our $2,750 from CA refund in mid-March (maybe). That's about 11,600 combined in refunds - way too much to reasonably spend! Whatever doesn't get spent and can't be exempted will just have to go to the Trustee.

My concern really is if it would be okay to pull out the $315/wk - which works out to $1,365/mo - in cash and use it for our normal expenses: groceries, hair cuts, personal care, light entertainment budget, DS's allowance, etc. $1,370 is the standard amount for these expenses allowed in our area according to the means test.

You can put the extra in a 401K. Thats what we did.

[AngelinaCat]

Trixie, I think you would be okay to start going back to your envelope system. The $315.00 is not excessive and you are more comfortable.

On the card, if you use it at all other than fuel, use it as a 'credit' card not as 'debit'. the reason I say this is that if something happens and an erroneous charge shows up you have a period of time, I think 30 days to contest it--much like a regular CC. With the 'debit' side, your account is hit and it is much harder to contest it and get that transaction reversed.

Good luck to you.

[Trixie007]

Thanks for your input AngelinaCat! It seems like it should be okay to me, too - but I see on here all the time people worrying about cash w/drawals... If they see nothing but bills, gas and grocery cash coming out, hopefully it will make sense on paper!

Okiemom: I wish I could put it into the 401k, but since we stopped contributions last year, we can't really start up again just before filing. The only way we have of putting money in to ours is thru payroll contributions.

Well, I actually did it - we're all stocked up now! $500 bucks at Costco (tons of meat) and $800 bucks at WalMart - stocked up on paper goods, toiletries, cleaning supplies, new sheets, a cheap carpet cleaner, and replaced our microwave that just died (good timing). And now back to our regularly scheduled penny pinching...

[Trixie007]

Must be nice to have those problems..lol

It's sad, really - a year and a half ago we'd have breezed through that money! Nice 3 day weekend away from the kids, new fishing pole for DH, a trip to the book store and scrapping site for me... sigh. Those days are gone.

[AngelinaCatHub]

Thanks for your input AngelinaCat! It seems like it should be okay to me, too - but I see on here all the time people worrying about cash w/drawals... If they see nothing but bills, gas and grocery cash coming out, hopefully it will make sense on paper!

Okiemom: I wish I could put it into the 401k, but since we stopped contributions last year, we can't really start up again just before filing. The only way we have of putting money in to ours is thru payroll contributions.

Well, I actually did it - we're all stocked up now! $500 bucks at Costco (tons of meat) and $800 bucks at WalMart - stocked up on paper goods, toiletries, cleaning supplies, new sheets, a cheap carpet cleaner, and replaced our microwave that just died (good timing). And now back to our regularly scheduled penny pinching...

[Trixie007]

Aww, thanks for the kind words!