I was dead set against envelope budgeting for years, then I gave it a shot last month

I always thought the cash envelope system was too rigid and old fashioned. But after three months of overspending on takeout by about $200 each month, I decided to try it with just my food budget. I withdrew $400 in cash on November 1st and split it into two envelopes, one for groceries and one for eating out. When the restaurant envelope ran dry by week three, I actually cooked from home instead of just swiping my card. Has anyone else found a system they dismissed at first actually works better than they expected?

2 comments

2 Comments

elizabeth4385d ago

Ryan's point about it being a physical block is spot on, but I think that's actually the whole point of the system for certain people. The problem with an app is that the money feels like numbers on a screen, not real spending power. When you hand over cash and watch the envelope go empty, it creates a gut check that a digital tracker just doesn't give some of us. It's a tool to build the discipline, not a replacement for it.

ryan7195d ago

Wait, isn't handing over cash just a way to punish yourself for spending money you already planned to spend? I mean, the issue wasn't the takeout itself but not tracking it, right? Plenty of apps like Mint or YNAB do the same thing without you having to walk around with envelopes full of money (and risk losing it or having it stolen). You still overspent by week three, you just couldn't swipe anymore - that's not "budgeting working," that's just a physical block. Feels like a workaround for a lack of discipline, not a system that actually teaches you better habits.