[akaivyleaf]

If you had the 5.00 BUDGETED to spend on groceries and you didn't spend it you saved it. Now you can budget the money to some other entitty. You can see the savings when you use the envelop system.

For example you put 50.00 in cash in an envelop earmarked for groceries. You put X amount in an envelop for clothes, X amount in a different envelop for bills....you get the picture. After you pay those obligations by cash, at the end of the month, whatever is left in the envelopes is a real and tangible savings. You can then take those savings and pay extra on a bill.

You're not so clear on seeing a savings if you don't have the cash in hand or if you fail to write down your obligations. For instance if you just say in your mind I'm only spending 50 bux on groceries, and you spend the 45.00 by writing a check and using coupons for the other 5, you don't see the savings because its a checking account and the money is just a written transaction in your register.