michael693•13d agoProlific Poster

I tried the envelope cash system for 4 months and ended up spending MORE

Everyone raves about using cash envelopes to stay on budget so I gave it a shot back in March. I set up envelopes for groceries, gas, and eating out with $200, $150, and $80 each week. The problem was I kept forgetting to grab the right envelope before leaving the house so I'd just hit an ATM or use my card. Then at the end of the month I realized I had blown past my limits because I lost track of what I already spent. I actually saved more money when I just kept a simple spreadsheet on my phone instead. Has anyone else had the envelope system backfire on them like this?

2 comments

2 Comments

abby_scott13d ago

Did you actually label the envelopes clearly and keep them in one spot where you'd always see them, like tucked into your phone case or clipped to your keys? Because that forgetting part sounds like it might be a setup problem more than the system itself failing. The whole point is making the cash physically painful to spend, but if you're not even bringing it with you then you're basically running a hybrid system where your brain is trying to track both cash and card spending separately. That mental math gets messy real quick, especially if you're busy with other stuff during the day. What tripped you up specifically when you'd realize you overspent - was it not knowing how much cash you still had in each envelope, or was it the card transactions that threw everything off?

jana_henderson5213d ago

Eight envelopes in and I was doing the EXACT same thing. I labeled mine with a SHARPIE in big block letters but still kept forgetting the envelopes at home. For me the card was the big problem. I'd have my coffee envelope with cash in it, but then I'd swipe my card for a quick lunch and suddenly my grocery envelope was short because I mentally moved money around in my head. It turned into this whole mess where I couldn't trust my own math by the end of the week. The cash part worked fine when I actually had it with me, but throwing plastic transactions into the mix just broke the whole system for me.