I guess you could call this our major resolution for the new year- we are going cash-only in 2012!
It’s a little bit of a scary venture, made even scarier by the major reactions from relatives! But I think we can do it. We will be budgeting from week to week and withdrawing actual cash each week (8 days from Daniel’s paycheck to mine, 6 days from mine to his, which works out well because his is larger!). We will use that cash until it’s gone and then…it’s gone! We will pay our bills as usual, but the cash allowance will need to cover groceries, other food, gas, entertainment, and any other things that come up. We are hoping that this method, along with just deciding to scrimp for a year, will help us to pay off our credit cards and see a debt-free 2013!
I think this is going to be great. It will help us get a better idea of how we spend our money, limit unnecessary expenses, and we are only committed for a year, so if anything comes along that I want badly, I can just tell myself that I only have to wait until next year (or budget for it)!
We’ve done really well in the last 5-6 months, paying off our car 8 months ahead of schedule and (almost, give us 5 more days!) paying off Daniel’s credit card. Now we just have mine to worry about, along with our regular bills.
We both definitely want to have another baby in 2013, so we are planning on doing the “prep work” during the last half of 2012. ;) In clearer language, I want to get pregnant this summer. And when baby #3 does come along, we will be in the market for a minivan. Hopefully that will come close to coinciding with the demise of our PT Cruiser (Did I say demise? I meant we’ll be finished using it.). Our goal is to make the PT last the entire year of 2012 and then we will probably sell it early on in 2013 to hopefully get some money to put toward our minivan purchase! The car has been very very good to us, so we’re knocking on wood. However, it’s almost a given that it will not be reliable during the daytime hours this summer, so we will be limiting our summertime driving (except in the early morning and at night)!
I’m looking forward to a lot of other things in 2012, but this cash-only deal is going to be a pretty major effort. I feel really good about it though.
Happy New Year!