Set your budget. Pull out cash each month. Separate it into envelopes. Spend only cash, according to the set amount allotted to each envelope category. When it’s gone, it’s gone. Voila, you’ve stayed within your budget. It’s an awesome budgeting strategy. Matt and I love the idea behind the Cash Envelope System. Great as it is, I have to admit, we are cash envelope rebels.
Is it possible to have a well managed household, avoid credit card debt, and stay within your budget even without putting cash into envelopes each month? I’m happy to share that it is very possible. It takes discipline, for sure, but a cash-only policy is not the only way to have a well managed budget.
Let me stop here to say that if you are new to budgeting and a cash envelope system is helping you get and stay on track – you keep at it! Do what works for you! But if it’s not working for you, or if the idea of pulling out cash, dividing it into envelopes, and paying with cash everywhere you go is preventing you from budgeting wisely – allow me to introduce the lovely Online Envelope Budgeting system from BudgetFocus.
Seeing this online envelope option on the BudgetFocus website is what really pushed me over the edge to love what they offer. They agree that assigning a dollar amount to each spending category each month is the way to go. But they also understand that cash isn’t always a convenient option. Sometimes swiping a card at the grocery store saves time. Paying for gas outside at the pump instead of heading inside to pay with cash is super helpful when you have little ones in the car (or when it’s freezing outside). Shopping online can save both time and money – but you can’t use cash when you do this.
So how can we use the envelope system without cash? Once you have an account set up at BudgetFocus, you simply input your dollar amount into each “Envelope.” As you spend from each envelope, you transfer that money to keep track of where you are for the month. It is so easy!!
I give a huge thumbs up to BudgetFocus for creating this simple online tool for all of us. This way, we create a workable budget. We set up envelopes. We keep track of spending. We transfer money from one envelope to another as we spend. We stay on track, we don’t overspend, we save time and effort, and we are in control of our money!
Thank you, BudgetFocus, for keeping this process simple and workable for us. Have you signed up for your 14 day free trial yet? I think you will love all BudgetFocus offers as much as I do.
So tell me – do you use a cash envelope system? Does that work for you?