My sympathy to brother-in-law Bill Mueller and the rest of the Mueller family. His only brother, Richard (known to me as Dick as a kid) died of an apparent heart attack. He was younger than Bill by a few years and as a kid, would follow his bigger brother around the streets of Plymouth. Richard was an accomplished artist. He left this world much too early.
Now my “magic pocket”. You all know that I pay cash for lots of little things. I do not have a debit card. I have never used an ATM card. I only use credit cards for larger items or when it is convenient. It is my way of budgeting. I always know how much cash I have in my pocket.
I know some of you use the “evelope system”. Key items like groceries, gasoline and clothing have cash placed in labeled envelopes and the money has to last until the next paycheck or until the end of the month. It sounds overly simplistic but it tells you where your money is going. When it is gone, it is gone.
My “magic pocket” is a modified version of the “envelope system”. I know the type of items that I will pay for from the cash I carry. It includes gas for the car(s), a Sunday newspaper, lunches for your Mom and I, birthday wishes, and miscellaneous small purchases. When the cash from my pocket is low, I deny myself things until it is time to replenish. My system includes a weekly trip to the bank.
For some reason my magic pocket has been stressed. Either I’m spending too much or prices are higher. I think my problem is the “spending”.
I have always liked the cash system. I get first hand knowledge of where every penny goes. There is no mystery in my spending.
The lesson Grasshopper is that budgeting limited financial resources never ends. It is your money. You need some sort of “magic pocket” system.
Love,
Dad