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The envelope system I tried for two months backfired hard
I put $400 cash into envelopes for groceries, gas, and fun at the start of January but ended up $50 short on rent because I kept raiding the envelopes for random stuff. It turns out having cash in hand made me spend it faster than swiping a card since I didn't track what I took out. Has anyone else found that a strict cash budget makes you more reckless instead of more careful?
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uma6851mo ago
The whole point of cash is supposed to be that it hurts to hand over, but for me it just felt like free money once it was in my wallet. I ended up treating the envelopes like a spending challenge instead of a budget.
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lisa51mo ago
Oh man, I used to be all about the cash envelope system but after reading this I'm starting to rethink it. @uma685 nailed it saying it felt like free money, I always thought the physical loss would make me more careful but now I can totally see how having all that cash handy would backfire. Honestly this thread is making me reconsider trying it, which is wild cause I've been recommending it to people for years.
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johnflores6d ago
Yeah I used to be the same way. Thought cash was the only way to stay on track. But reading this made me realize I would probably do the same thing. That part about treating it like a spending challenge instead of a budget hit me. Because I can totally see myself thinking "oh I still have $200 left in groceries, let me grab some snacks" and then not noticing I grabbed $50 worth. The cash just disappears from your hand before you know it.
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