Has anyone ever used the envelope system for shopping and budgeting?
By puccagirl
@puccagirl (7294)
Israel
October 18, 2010 4:17am CST
So lately I have been reading all kinds of information about personal finance, since I would want to be a bit more knowledgeable on this subject. And one suggestion that I have seen in several places is to use the envelope system for budgeting.
This means that you make an envelope for all your budget categories (food, entertainment, travel etc) and put cash in the envelopes and then use that cash and only that cash in order to stick to your budget.
It sounds like a great idea, but does it really work? Has anyone tried this?
1 person likes this
6 responses
@puccagirl (7294)
• Israel
18 Oct 10
Yeah, right? It seems like a lot of work, to be honest. And I am not sure if I am comfortable with having so much money at home either. I think a budgeting system needs to be simple and easy to do, and I am not sure this is... that is why I started this discussion to be honest...
@djbtol (5493)
• United States
19 Oct 10
My wife and I did this for awhile to gain control of the checking account. My wife had been too casual about writing checks and not really considering if we have the money to spend that way.
The money for fixed monthly bills did not get put in envelopes. We just paid the bill. The money that was somewhat discretionary (including groceries) I brought home an agreed upon amount of cash. Of course, my wife could have used more cash, but we did not have the extra.
My wife would then split the money up into envolopes and spend accordingly.
People who do not mess with a budget, do not really know what it is like. The envelope system is good in that when you have emptied an envelope, you will be forced to consider why that happened. Next, you will have to consider if you should rob money from another category gto put in the empty envelope. All of this process is making you think about how much money you really have and how you want to spend it.
Of course trouble will come. You will find you have $20 left in an envelope and what you need to buy costs $25.
Happy Frugal Shopping!
@puccagirl (7294)
• Israel
21 Oct 10
Great tips, djbtol, really nice to hear from someone who has done this. I think what you said made a lot of sense, so thanks for sharing your experience with us!
@ThirdMillion (604)
• United States
18 Oct 10
I have heard of this before and even known people who have tried it. Seems to work great if you have the willpower to stick to it and not "sneak" money from the other envelopes. It certainly couldn't hurt to try. =) Let us know how you do with it.
@chillpill90 (1936)
•
18 Oct 10
yeah i used to do that and it did work need to start doin it again to make sure i can stick within my budget.
@santosmarichris (1849)
• Philippines
18 Oct 10
Hi Puccagirl. I tried that before. Didn't work for me, lol. 
Because even if the money is in the specific envelope I get tempted to use it specially if the bill is not yet due. So, now here's what I do. Since I already know how much my bills are monthly, after I get my salary half of it I invest, the rest goes for my bills and if there's some extra that will be for my shopping. 
Hope this helps you somehow. Have a good day!
Because even if the money is in the specific envelope I get tempted to use it specially if the bill is not yet due. So, now here's what I do. Since I already know how much my bills are monthly, after I get my salary half of it I invest, the rest goes for my bills and if there's some extra that will be for my shopping. Hope this helps you somehow. Have a good day!@puccagirl (7294)
• Israel
18 Oct 10
Well, at least you tried it! How else are you going to know if it is a good system or not? :)
Thanks for your reply, I really appreciate it!
@arcutamorab (19)
• Philippines
19 Oct 10
Hello there!
Me, I can handle of budgeting if there is something important things to buy..and sometimes, I fell rush of spending money..
