Why I Ditched Cash Envelopes And What I'm Doing Instead

The cash envelope budgeting system is a personal finance method that uses physical envelopes to allocate and track your spending in different budget categories.

But I've ditched the budget system that I've used for 25 years (the one that got us out of debt) and I'm doing things a little differently.

In this video, I share my personal journey and reasons behind my decision to move away from the popular cash envelope budgeting system. As someone who has been a devoted follower of this budgeting method for a long time, I felt compelled to explain my change of heart and shed light on my challenges.

*************************************************************************
*************************************************************************

Smart Money Recovery:

Looking for more ways to save money?
Check out Smart Money Recovery.

The Complete Money System to help you finally overcome the fear of looking at your bank balance!

Links included in this description might be affiliate links. I may receive a small commission if you purchase a product or service with the links I provide at no additional charge to you.

As an Amazon Associate, I earn from qualifying purchases.

Favorite Money Saving Things:

________________________________________________________________________

I’m so very happy to have you here. We are all about saving money at Frozen Pennies. Whether you have a goal like debt freedom, purchasing a home, retiring, or just making ends meet, we are all about making that happen. Here you’ll find tips on saving money on groceries, ways to tweak your budget, and living an overall frugal life (all while having more fun)! Thank you for supporting my channel.

About Sara:
Sara is a wife, mother, and creator of Frozen Pennies. With a degree in English, a former teacher, and a Certified Financial Coach through Ramsey Solutions, there is no better place to learn about debt freedom, budgeting, and overall frugal living.

________________________________________________________________________

DISCLAIMERS:

- Links included in this description might be affiliate links. I may receive a small commission if you purchase a product or service with the links I provide at no additional charge to you.
- Information on this channel (Sara Conklin, Frozen Pennies) only represents my thoughts and opinions. I am not a medical doctor, medical professional, or financial advisor. However, I am a certified financial coach through Ramsey Solutions. All content on this channel is intended for informational & inspirational purposes only. Don't hesitate to contact a professional with any questions. This video and all videos on this channel are a means of social support.

[saraconklinfrozenpennies]

Have you ever tried the Cash Envelope System? Is it for you?

[robininva]

We’ve used the envelope system for 40 years. Early in our marriage, my husband created a program….called it ‘envelopes’ and we’ve used it ever since. We’ve never missed a bill….ever. Our house has been paid for in full for 14 years. We’d never use any other method. It still works. ♥️ I even have an amazon-bought wallet with plastic envelopes for my own needs (girlfriend dates; yard sales; groceries; Christmas). And I absolutely love micromanaging my dollars! ♥️

[minyctk]

You are the first person I’ve heard on here talk about bank trips. Other people talk about cash stuffing without talking about bank trips. Thank you.

[yourhomeisyourbusiness]

I do use the cash system for food. However, instead of using a zero based budget for food, I roll over into the next month any unspent funds. In that way, if there’s any great deals and I want to stock up, the money is there.

[BeFree-BeFrugal]

I leant budgeting from my parents, they kept a saving s account but in a note pad allocated individual columns for its use. I.e holiday, Christmas, bills etc

[nancyh]

I grew up with parents who used the envelope system so I know it works. I have used it before and know it would be beneficial for me to use again. I do have sinking funds set up that work really good. So just need to set up my envelopes and start using them again.

[kimberlyalexander]

I started the system but currently I am not doing it. I am going to start fresh in June and not look back. I am going to get to that same level of financial control and wisdom as you have. Thank you for the inspiration!

[dianeleatherwood]

I tried envelopes.. but when my husband ran a quick trip to the store, he would have to use the debit card. So not always practical. I am using Everydollar now and I like it... I am thinking about using envelopes again once I retire and have more time to use it and help me not overspend in the store.

[shelteredsparrow]

You are right about the help of spreadsheets.
I tried the envelope system and failed. I felt like I would need money but not for the things in the envelopes. I am a person with serious energy issues that are probably medically related. Writing everything down was not realistic as a mother of three children.
I knew I should be doing better with my finances but had zero motivation to do so. What helped was me realizing that there was no motivation to save. I started something I called the money game. Once a week, if I had gotten our finances recorded daily and debt paid off, I could put money in a vacation fund.
Rather than writing everything down, I would have a that was a thousand. 1000, 2000, 3000, 4000, 5000, etc. This showsme too if my account is not balanced. 8:22 I had to go into my online account and transfer money into checking to cover the expenses. This was so much easier than trying to remember to write things down.
The other thing I did was round all monthly expenses by fourths. That meant I would have extra money four times a year in 5 week months. I keep track of Amazon spending by a spreadsheet. I pay off my Amazon account once a week. I have other credit cards for an emergency but don’t use them.
I am fortunate in being healthy and able to walk so I don’t need a car, but we are debt free.

[allisonmodaff]

I use the envelope system for my monthly grocery budget. Works great and forces me to pay attention and not go over budget.

[Nancy-nxcf]

I realized that I was spending half of my income on Amazon. I cancelled any subscriptions and only purchase online if I cannot get whatever without it costing more than on Amazon. I included transportation in this because I don't drive and it's not cost effective to pay Uber round trip.

[TonicBlade]

I would use everydollar and mentally treat every line item as an digital envelope. I would check my account and everydollar often .
I never felt comfortable carrying around cash all the time. Hoping to be out of debt the end of June or first week of July :)

[dostagirl]

The envelope system has been instrumental in my savings journey. Anytime I stopped (like when the pandemic hit and some stores wouldn’t take cash), my spending spiraled out of control. Some people do better with cards, but I’m definitely not one of them. I also cancelled my Prime account as online shopping were the biggest areas of waste when I tracked my spending. I pay my bills online but variable spending like groceries and personal fun money are better (for me) with the cash envelope system.

[kristiboyer]

My “cash envelope “ is on paper only. All my money is in back and I just keep track of my Sinking Funds in notebook. I like the thought of my money making money in high interest savings account instead of just sitting in drawer

[therealkathytincler]

Hi- I just discovered your channel and am enjoying watching. I will be marathoning you this eve Lol (seriously). Appreciate that they are short and fast moving. Fun Fact. In 1967 we were newly married when my Dad sat us down and explained the envelope system....Dave Ramsey was 7 yrs old! I have a friend whose granddad taught her. I've managed just fine without it for years....have my own way 😀Tfs

[rhoneawilliams]

I don’t use the envelope system because of the risk of burglary and fire. Home fires and burglary happen more often than people talk about.

Also biweekly trips to the bank are too inconvenient for me.

I am about your age, I agree about self-control as you age.

Also my money earns interest at my credit union and via my online savings account.

[AEvans]

You do have to have self-discipline and self control to use the cash envelope method. You're right that it is time-consuming, esp when there are a lot of sinking funds. This method is not for everyone. When you know you have cash at easy access it can be a temptation to use and spend. I think to use this method, a regular sit-down routine to budget and stuff should be established. Getting in the habit of doing that will help one stay on track to meet their goals.

[mm]

Cash doesn’t work for me personally. For me using my debit card works best

[libbysworld]

I've been on my journey a shorter amount of time, but over these past 2 years I've been able to become FAR MORE responsible. I have always been a digital budgeter. I have a VERY small amount in a few key categories in a cash wallet, but the lion's share is in my checking account and my sinking funds are all high yield saving accounts.

[phillhill]

Congratulations on your being debt free of credit card debt. I also ditched the envelope method. I only have one credit card with a balance and what I realized was I had almost 1 thousand dollars rolling over so I put it in the bank and paid down my card balance. What I do now is track what I spend to make sure I do not go over a certain amount, when I get the 3rd paycheck everything left from the prior 2 check goes to the credit card company.