Hate the Cash Envelope System? Use This Instead

[@bsquaredbudgets2926]

Cash has never worked for me, the inconvenience of having to withdraw cash and make separate transactions for different categories was frustrating. I do use credit cards for all of our purchases. I just use the system of putting the receipt into my wallet or purse and reconciling my budget within 24 of each purchase.

[@DebtFreeMillennials]

Love that!

[@naturalbeauty_abena1230]

The only cash envelope I use is Eating Out/tips money. It keeps me on track to not go over my $40 a month budget. I put the balance that was not used in my Tech or Personal funds quarterly. Everything else is electronic and I track it on my excel spreadsheet. I have never used the cash system for budget because of the hassle it present for my lifestyle. Thanks for sharing another approach that might be useful for someone.

[@DebtFreeMillennials]

Nice! I like how everyone has their own style and can create a hybrid of budgeting systems. Love that you transfer your cash over to your other budget categories - great idea.

[@jillpruett4772]

I have been using Quicken personal accounting app since 1999. I account for everything with this, including accounting for cash. You can't get the application anymore and I dread the day I have to convert the whole mess to QuickBooks or (?). The one thing I noticed when I was getting out of debt (1990's), was that being OCD about record keeping was essential for me to keep on track. The fact that I am an accountant pretty much explains it. Keep on doing what you are doing -- you are giving hope to so many people.

[@AlexQuinnYT]

I track every one of my accounts in a spreadsheet, so cash has never felt like "real money" because it's not included. Honestly, tracking my purchases and seeing exactly how much I'm spending in certain categories was the best way for me to get my spending in control!

[@DebtFreeMillennials]

Awesome to hear!

[@yojs17_]

I like this method. However, I would place a card with a log that tracks what I’ve spent and the balance that I have left, so when I am ready to spend I can look to see how much I have left. This is what I do with the cash envelopes. I am good with cash but my husband is not 🙁

[@sandyseibelhager7131]

I basically use a cashless envelope system. I have everything on a spreadsheet which is divided into categories (like envelopes). We just went out to eat. I brought the receipt home and entered it into the dining out category of my budget spreadsheet.I can immediately see the total that we've spent in that category so far and what we have left. The best part is the computer does all the math for me. I've also tried Every Dollar for this so that I could enter the transaction immediately but I like the spreadsheet better.

[@DebtFreeMillennials]

Good for you! Sounds like you have a system that works for you :)

[@teresalandhamilton8476]

I hate having money and handling money rn is just not feasible for me right now and the going to the bank is just out of my way. I have been looking for other budget methods and I’m excited to try this....thank you!

[@FrugalRules]

It's great that you're sharing that there's more than one way to budget and manage your money - it's not "one size fits all".

[@wisemoneywomen]

The cash envelope system can be frustrating - because going to ATM is super annoying and inconvenient (although part of that is the point). This is a fun way to keep track of receipts and use them to make money on cash back apps.

[@milagros-moneywisefinances7438]

I hear you. I used to do that, going to the bank to get out cash and depositing it to pay for expenses i used my credit card for. Ally or Capital One 360 are good options as well

[@otherryan]

Great concept! I'm also a fan of categorically organizing my purchases, because credit card points are so lucrative instead of just using cash. I wholeheartedly believe in using credit cards *like* cash, but with the added rewards. New viewer and subscriber here!

[@DebtFreeMillennials]

Thank you!!

[@Nycpa5]

I like this idea, I just reviewed my credit card statement to see what purchases were made for the house and what were mine, to know from what account to pay it from as my husband and I have a joint account and also our own, and some of the descriptions or business names are like seasoned edge LLC for a fast food place and I am like what is this for??????

[@Buaastroctyes]

Wow this is such a great idea! Maybe I need to switch over to receipt envelopes!!

[@Buaastroctyes]

Also there has been posts everywhere in stores where I’m at saying there is a national shortage so they want us to use exact change

[@juliawallis4318]

Love this idea so much more than cash envelopes! Can’t wait to try!!

[@JesGraggHampton]

I used to use cash envelopes but you are exactly right, it is super time consuming and with 3 kids I switched to tracking recipes instead and it is much more convenient for me!

[@DebtFreeMillennials]

Nice! It's just easier that way so long as you know how to stay within budget on your spending. I bet it'd be a little time consuming with 3 kiddos

[@AccountabilityCorner]

This is exactly what I've been needing! My husband and I go back and fourth with with cash and debt card. I'm not sure about the credit card use, it feels like we spend more when we use the credit card even tho we we pay it off. It feels wrong to use the credit card when we still have debt but I like the vacay receipt envelope also!

[@DebtFreeMillennials]

Yay! Yeah I had to start with physical cash before I could use a credit card responsibly.

[@markwalter4881]

D Ram has a point with his cash envelope system when getting out of debt. Please consider these three things: First, you can't argue with an empty envelope. If you spent past your budget cash, then you need to get your spending under control or redo the budget. Second, when you pay with cash there is a feeling that you are giving something serious up. You see hard earned cash leave your hand --for what? To quote the lady in the check-out line, " ...I'll pay for it with our card. I promised my husband I wouldn't spend any money today!"

[@AccountabilityCorner]

Good point I'm stuck in between both systems. This is an alternative to cash envelopes for those people who have self control around money.

[@DebtFreeMillennials]

Cash envelopes work if you stick with the system and also there are ways to budget and do well with your finances without cash envelopes.

[@AccountabilityCorner]

@@DebtFreeMillennials lol yea I'm terrible with the cash envelopes because once we run out of cash in the envelop I'll just go into the checking account and use my account cushion. We dont go into debt with these purchases but we go over budget. I'm starting to thinknits because I'm setting an unrealistic amount in hope of saving extra. I think I need to relook at how I budgeg in general from monthly to weekly.

[@cherylwilliams7944]

Just came across this video. I was just be thinking about keeping my receipts. This sounds great and a must try. Thanks for sharing!

[@donneee2208]

Wow this is so smart!

[@saorieubanks4404]

I love this new concept. Can you show us how you organize your wallet or do you just put them in your purse?

[@DebtFreeMillennials]

I don't keep them in my wallet. I usually just keep them in my front entry table and add the receipts to my envelopes when I get home!

[@saorieubanks4404]

@@DebtFreeMillennials That's a great idea! That way they dont get lost in the black hole (aka my purse)

[@TonyaRobertson]

I used the Note app in my phone but I want to do both for the Neuro connection. Great video as always!! Some day I would love to collab and talk about Mortgages and the options to paying it down fast with both our financial tips

[@DB-fx5oo]

Great idea! Thanks for sharing

[@DebtFreeMillennials]

You are so welcome!

[@ellierami1268]

do you clean out your envelopes every paycheck so you can start fresh or just let it accumulate?

[@co7314]

One tip: receipt paper is not designed for archival. It will fade & be unreadable. If you need to keep receipts for an accountant/business plan/ taxes/etc, you should scan those babies to digitize them.

[@DebtFreeMillennials]

For sure! If they are receipts that need to be kept for insurance purposes - but I don't hold onto grocery or store receipts at all.

[@anthonymaldonado5301]

You said "if you want to live debt free then subscribe" well I just subscribed..am I debt free yet?

[@DebtFreeMillennials]

haha are you??