Does the Envelope System Really Work?

General
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Hey guys, I’ve been hearing a lot about this Envelope System for budgeting lately. Do you think it actually works? I mean, the idea of using physical envelopes for different spending categories sounds kinda old school, but I’m curious if it’s effective in helping people manage their finances better. What do you all think?

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You could give it a shot by starting with just one spending category that tends to spiral out of control for you. For instance, you could allocate a specific amount for eating out each month and keep that cash in an envelope. Watching the money diminish as you spend it can be a helpful visual reminder of your budget limits.

In my experience, the envelope system didn’t quite click for essentials like gas, but it did wonders for discretionary spending like clothing purchases.

If overspending is a persistent issue, it might also be worthwhile to explore the underlying reasons behind it. Opening up to someone about your spending habits could provide valuable insight and support. Personally, I found that understanding the root cause of my spending habits significantly improved my relationship with money over time.

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Old-school Envelope System for budgeting is actually pretty cool! Instead of apps or spreadsheets, you use cash in envelopes for different spending areas ( groceries, fun stuff, etc.). Seeing the cash gets you thinking before you spend, and once an envelope is empty, that’s it for that category! It’s simple, visual, and helps you control your spending. Worth a try if you want a new way to manage your money!

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It is effective, but discipline is still required, just like with any other budgeting technique. If your beer money envelope is empty, you cannot steal money from the envelope containing your power bill.

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Hey, I use envelopes just for small stuff like haircuts, weekly coffee, and sports. It’s easy to handle with cash and simple to set aside $10-$20 each week. For bigger expenses like yearly license plate renewals or lawn care, I use a checking account for bill payments.

Oh, and I don’t actually use envelopes anymore. I’ve got this small binder with zippered inserts. Each week, I put the money in the right slot.