Budgeting with Gift cards?

[6FeetUnder]

This is something that I have been thinking about quite a bit. I (like many people on here) are not the best at controlling myself when it comes to spending. I have been thinking about using giftcards (King Soopers, etc.) to help control my spending.

For example, setting up a budget that allows $200 for groceries per week. I would purchase 4 $50 gift cards to a grocery store. Then I would spend the rest of the money paying off bills. This would prevent me from spending extra spending money, while paying down my debts.

I guess this is similiar to the envelope system... I am just surprised that I haven't heard anything talk about it before...

Thoughts???

Chris

[sweeps]

It's not a bad idea, but there are a few drawbacks.

First, when you buy a gift card to a particular store, you're locked in. Let's say you buy a $100 gift card at Jack's Supermarket, but then determine you'd like to shop at Jill's instead. Or you find that you only need to spend $75 instead of $100. Basically it's not as flexible as having money left over in an envelope.

Second, you have to watch out for fees and expirations on gift cards. Some gift cards expire, others start losing money after a certain period of time.

[sakigt]

I like the idea, especially since most places offer gift cards, it would be an easy habit to keep.

Personally I buy gift certificates around the holidays since sometimes some places offer deals for them.

[Ima saver]

I don't like gift cards personally. I have been given two, one for $500 and one for $75 and I have never used either. I would rather use the envelope system.

[quiznut1]

There are a number of gift cards available on Ebay for specific merchants like Walmart and Target. There is a Super Target store (similar to Super Walmart) near where I live, and I have made a relationship where an Ebay seller now sells me the gift cards outside of Ebay for 10% off. I usually get a $200 Target gift card for $180. Never had a problem and I've called the number on the back of the cards every time to verify the amounts on the cards. It's a great deal in my mind.

[6FeetUnder]

Wow! Want to start a group buy! =) j/k

Thats a great deal!

Chris