The cash envelope system? Any fans?

[lori63]

I was intimidated at first (I guess a little scared) when we switched to just cash, but it has been great. We actually 'see' what we spend.

[laceylyn77]

For nicer envelopes try this out. It's not as embarrasing pulling it out at lunch with the girls, lol.

http://laceyandtyler.blogspot.com/20...-clutches.html

[MNfrugal]

I don't use cash... but I write down how much we have in each "account" on an index card that I keep in a checkbook flap. When I pay bills (cash or check on the spot, or Visa bills later), I deduct that amount from each card. And I divide the book itself into "Essentials" (where the total is what those cards adds up to) and "Other" (which pays for food, kids' stuff, haircuts, etc). It works great for me.

[VanessaJ]

Interesting idea...I never thought of this before and if I can get my husband to do it, I might try it! Thanks!

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[flipchick1127]

Another way to do the envelope system without cash, similar to what MNfrugal said, is to have an envelope for each expense category and write the limit for that category on each envelope. Then, whenever you make a purchase in that category, write it on the envelope and subtract it from the limit. Then, put the receipt for the purchase in the envelope.

[James]

I am very happy to have found this site, I have had some trouble keeping my budget in place and have been looking around at various options. The envelope system is defiantly something I'll try. I've been looking at some other advice and I think that with our unstable economy it is best to make our lives as cash based as possible. The other big tip I got is to cancel all contracts that I have, starting with my cell phone, I bought a Net 10 phone and now I can also keep a close eye on my telephone spending, I've saved tons already. My cable is the next to go under scrutiny, and maybe even the land line, since I have a pre-paid cell phone I'm not sure I need the land line as well. Now I'll try the envelope system instead of my credit card and see how that works for me, I'm quite excited to see how much I can save. Thanks

[moneymatters]

we've been using the envelope system for several months now, and it is amazing how much money we've been saving just by doing that. When you have the envelopes you're not tempted to go over set budget amounts - because you can't. You spend what's in the envelope, and when it's gone - its gone! We're probably saving $500-600/month doing this as well!

I did a post about the envelope system of budgeting on my blog:

A Way to Control Spending: Envelope Budgeting

[alpha_academic]

There's no way I could revert back to using cash! Using my debit card is very easy, and all of my transactions are logged online, so it is very easy to see where our money has been spent. (So I am able to see what my wife has bought, and she can see what I've bought.) This helps to keep things in check.

Check out my blog about everything finance:
financephdprep.blogspot.com