I thought envelope budgeting was a gimmick until I tried it for 60 days

Last fall my credit card bills kept creeping up every month. A friend told me to put cash in labeled envelopes for groceries, gas, and fun money. I figured it was old school nonsense but gave it a shot anyway. After two months I saw my spending drop by $120 just because I could physically see the money leaving. Has anyone else had luck with a cash only system for certain categories?

2 comments

2 Comments

noah91413d ago

Kept doing it for six months now. That physical cash thing works because it hurts more to hand over a twenty than swipe a card. I also added a junk food envelope. When it's empty I don't eat out. Simple but effective.

christophers2713d ago

Man that envelope idea is genius but I tried it once and ended up stealing from my own envelope to buy a burrito at 2am. The cash part is real though, I actually flinched the other day handing over a twenty for a sandwich and almost asked for my change back mid transaction. My wife laughed at me but it really does make you think twice about dumb spending. I should try the junk food envelope but knowing me id probably just eat the envelope itself if it got in the way of a taco run.