The Hybrid Budgeting / Zombie System
Alright guys, I think we found our happy medium with the cashless society debate 😉
A guy I met at FinCon last year chimed into our convo here, and he officially wins the award for being the most creative, haha… But also super USEFUL too! Because not only does this take the pros of both sides of the equation (cash vs digital), but also solves a slew of those budgeting problems we listed out on Friday too.
Here’s his idea, in response to me wooing people with points if they can convince me cashless is good 😉 Let me know what you think:
Hey J. I will take you up on triple point offer! Actually, I’m going to want 1.5x in brownie points as I’m going to convert you to a hybrid system.
Here it is:
#1. Put your “Regular” expenses on autopay from one bank account. “Regular” = fixed expenses (including savings) in accounting terms.
#2. Deposit enough, but only enough, in that account to cover the Regular expenses that come due until your next paycheck. For most people this will amount to 40-70% of their monthly spending. Consider every dollar deposited to this account spent the moment it is deposited.
#3. Withdraw the remainder of your pay in cash.
#4. Divide the cash up into your “Irregular” expenses in the amounts you would like to spend on each in a perfect month.
#5. Doll out the cash as needed. If you run out of cash in one category, you can decide which area of your spending life needs to take the hit to subsidize the shortfall in that area. (This makes you decide if the overspending is a necessity, was bad planning requiring an adjustment, or just crappy willpower on your part)
#6. Repeat for next paycheck
Here is why this works so well based on the semi-doomsday scenario you wrote about.
- No electricity to transfer funds for a payment that is due? Not to worry, the bank or vendor can’t tell you haven’t paid because their system is down too!
- Even if they could tell you haven’t paid, they can’t come get your stuff because they can’t look up where you live, because that too is in some e-database somewhere
- The utilities can’t shut off your power because it is already off due to the zombies
So there you sit with your little pouch full of cash from which you can buy groceries and toilet paper. Pretty nice. And who knows, since you are one of the few shoppers with cash, the grocery store may be open to huge discounts on their perishables and frozen foods! So enjoy your flame grilled steak and lobster tonight that you bought for less than the mac & cheese was going for.
Upon official notification, I’ll shoot you my brownie point bank account number so you can send my winnings electronically.
Not too bad, sir! One foot in the digital landscape, and one in the cash-is-king other – milking the pros of both, while not screwing yourself by going “all in” on either.
I can dig it… Another perk is that if your cards/accounts get hacked, they only have access to a portion of your money too (which may or may not be there by the time they get in), and if the government is on your tail, they’ll also only have a portion to go on! Leaving you to your own sneaky lifestyle and improprieties! Boom!
So your points are on the way, Mr. Walker, and I salute you for your creativeness.
Although, I must say – I kinda feel like you cheated, as I just stalked your website and saw that this is the same system you’ve been peddling to all your friends and family too! For years now!
And you know what? I ABSOLUTELY LOVE IT 🙂 Not only did you figure out a set up that really works for you and your money, but you then took it a step further and decided to share it with the rest of the world too. Thanks for paying it forward!
And in fact, I take back all your brownie points, and in exchange give you something much better: FREE PUBLICITY. Let’s turn this into the “Mitchell” show today and spread around all your goodies – what say you? (I take that as a yes since I can’t hear you… let’s do this!)
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The PouchPlan combines the best of the envelope budgeting system with the advantages of today’s electronic payment abilities, [resulting] in a safer, more reliable, and less active participation requirement for users… It’s core is a naturally intuitive based spreadsheet that has you split your expenses into those which are regular in amount and frequency and those expenses that are not…
The spreadsheet automatically calculates your bank deposits, cash needs, and the timing of both, not just your budgeted amount. Once set up, you are on autopilot. It requires about 5 minutes per paycheck to keep you exactly on target with your plan.
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