The cash envelope system? Any fans?

[n_vizion]

This is my favorite way of tracking my expenses. Also with the envelope system, I get access to loose change which I can also put into my change jar.

[Bernadette]

I've never used the cash-envelope plan for monthly bill paying, though I do use it to save toward bi-annual expenses like property taxes and car insurance, so that I don't go merrily along (in denial!), thinking I'm in good shape, then suddenly have a $300 or $500 bill sneak up on me. I just put approximately 1/6 of the payment amount in an envelope each month.

The cash envelope system is also a great way to save for targeted projects, vacations & such as this article explains.

[jdp]

Thought I'd chime in on this. I used this system to get back on track financially and it really helped. Then I grew more comfortable, things were working well so I went back to "normal" money management.

Recently I moved, came into some unexpected money, had many unexpected expenses and things started to become a big blur. It was so nice to go back to this system. And it was great not because it solved all my problems but because it worked with my hands-on-it nature to ease my mind. Somehow delegating things in an online account and such doesn't work as well for me.

If you were 'former' envelope system user I have to recommend keeping it in mind for a standby

[singleguymoney]

Originally Posted by spencer

I've tried doing something similar once, but it was a real pain to carry all this cash around, so I stopped doing it...

This would be a problem for me too and I am too scared I would lose it.

[lifeisgood]

I started the cash system on Aug 1 and already the results are shocking. It's amazing how many times I have said no or bought less because I'm protecting that cash so it lasts or so I have some left. It's kind of a game. The thing is, it's so easy and I don't feel like I "can't afford" something. I see it as making choices because there have to be limits. It's a tangible way to stay within the parameters. I'm going to continue. I feel like getting in control of my finances can actually become reality.

[72Tiger]

I have been doing the envelope system for a while now, and don't carry the money around with me all the time. I just keep it safe at home, plan my trips, and take what I need with me. I don't even take it out of the bank all at the same time - usually 1/4 of my monthly total at a time, for 4 weeks.

[*bbj*]

I completely agree with using a cash system because it's the only way that I can find that's REAL enough to keep me in check.

Another thing I did was to cancel all my automatic payments for a couple months. I dumped a bunch of services that I had only been funding because I didn't have to handle the money each month.

[The Zoo]

Originally Posted by lifeisgood

I started the cash system on Aug 1 and already the results are shocking. It's amazing how many times I have said no or bought less because I'm protecting that cash so it lasts or so I have some left. It's kind of a game. The thing is, it's so easy and I don't feel like I "can't afford" something. I see it as making choices because there have to be limits. It's a tangible way to stay within the parameters. I'm going to continue. I feel like getting in control of my finances can actually become reality.

This is exactly how I feel - I have to keep persuading my husband that I feel GOOD doing things this way. I don't feel denied at all. It's all about the freedom to make these choices.
I don't use the envelope system but we track everything on a spreadsheet and it really helps to see where the money gets spent. I've been tracking for a year and a half now and suddenly everything is so clear and I feel so much better and more in control than I ever have.

[AlmostFrugal]

Originally Posted by The Zoo

This is exactly how I feel - I have to keep persuading my husband that I feel GOOD doing things this way. I don't feel denied at all. It's all about the freedom to make these choices.
I don't use the envelope system but we track everything on a spreadsheet and it really helps to see where the money gets spent. I've been tracking for a year and a half now and suddenly everything is so clear and I feel so much better and more in control than I ever have.

I'm with the group of people that tracks their money without using envelopes. I find that when I use envelopes, for groceries for example, the €3.97 leftover from the €100 weekly grocery budget doesn't get rolled over into next week's budget it just... disappears. Plus, I enter my spending information into my spreadsheet several days to a week later from my online bank account and I forget what the cash was spent on.

I feel like I already have too many things to keep track of, without having to keep track of cash too. The one thing we do use an envelope for is our eating out budget, for the weekly pizza/McDo run.