![]() ![]() I really try to avoid going to the bank or the ATM. You Must Go to the Bank or ATM to Withdraw Cash.They like the simplicity and ease of using plastic, and who can blame them? However, for the envelope budgeting system to be successful, the whole family needs to be fully committed to making it work. Some people are adamantly against using cash. It’s Tough to Get the Whole Family on Board.I believe the budget I kept electronically was off by hundreds of dollars each month due to the fact that I lost receipts on a regular basis. On the other hand, if you use an electronic program to do your budget, it is easy to miss entering in purchases. When using the envelope budgeting system, you pay upfront and there is nothing you need to keep track of. In fact, people spend 10% to 15% less when using cash. You’re less likely to spend wastefully when you see the money disappearing before your very eyes. ![]() However, when you use the envelope budgeting system, you are more likely to think through every purchase. When I used an Excel spreadsheet to create my budget, I would look back at the end of the month and be surprised to see what I wasted my money on. ![]() Have you ever been charged an overdraft fee from your bank? If you put away your debit card and use cash instead, you are much less likely to overdraft and get charged the absurd fee. When using envelope cash, you will be more in tune with your budget because you’ll be reminded of it every time you reach for an envelope to spend from. Credit cards can easily cause you to overspend. The concept of money is much more tangible if you use cash instead of plastic. Though the money in the envelope system is not intended for emergencies, you can always use it for one – like if your car breaks down in the middle of nowhere and you need to pay for a tow or a ride back home. Instead of carrying cash, many people carry plastic, which can be a problem if an emergency arises. The more you practice being disciplined, the easier it is to take responsibility for other life areas you want to improve. We all need discipline in our lives to make us better people, whether it is with our spending habits, our eating habits, or our productivity at work. The envelope system has been around for a long time for good reason. If you are only paying for things using cash, and you run out of cash, you cannot possibly overspend.
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