Shannon Lee Simmons

And I feel like it works for most people when that micro budgeting only works for like 5% of the population who are typically engineers.

I'm not a fan of envelopes in the sense of cashless, or I think it should be done in debit and you just have to move money around in a checking account.

So I don't think it needs to be like actually physical cash in an envelope.

Although back to my grocery store example, maybe every now and then as a good reminder for all of us about decision-making, you're right.

I'm not fussed about what the micro category is on.

I think I'm only fussed about people making those decisions of can we afford this or not?

If it's for daily life and it's within the spending account, like go for it.

I think when it becomes a pondering moment, can I afford this?

Is when it would be something that would rob your spending money.

It's like a huge expense that would be like, oh, this is all of my money that would be in the account.

So those would be like those big expenses.

And so my rule of thumb or my guideline there would be like if you're buying concert tickets, let's say, and it's like 500 bucks.

or more these days, if you're paying for multiple tickets, that would be something that if you're like, this is probably not something that I can spend in my day-to-day life.

So I'm gonna put it on my credit card.

So then my sort of rule of thumb around affordability is like, okay, well, if it's not a day-to-day spending, then do you have money set aside in your short-term savings account for these kinds of larger expenses?

If you do, then like pay it off from that.

If you don't,

then okay, then it'll sit on a credit card.

And can you pay it off within three to six months, three being ideal?

And that's typically my red flag.