Cash envelope system felt like a gimmick until I got real with credit card debt

I used to think the cash envelope thing was just for extreme couponers or whatever. But after running up $1,200 on my Visa in a single week eating takeout, I decided to try it for food budgets last month. Has anyone else had that moment where a simple system actually beat your better idea?

3 comments

3 Comments

anthonymurray1mo ago

My buddy Mark swore by the envelope system after he maxed out two store credit cards on Xbox games and pizza last winter. He labeled one envelope "groceries" and another "takeout emergency fund" with $100 each. First week he had to pull cash from the laundry envelope just to buy bread and eggs. But by week three he said it was hilarious how fast the physical money disappearing made him actually cook at home. He still uses the envelopes three months later and claims he's saved like $150 just on not ordering DoorDash every night.

shaneb161mo ago

Man Mark's story hits close to home because I did the same thing after my credit card statement showed I spent like $80 on gas station snacks in one month. The envelope system is brutal at first but there's something about watching the cash actually leave your hand that makes you think twice. I switched to using cash for eating out and my wallet looked sad for two weeks straight. But hey, glad Mark is sticking with it because that DoorDash habit is a real money pit when you add it all up.

murphy.blair21d ago

Picked up the envelope system myself about two years ago @shaneb16, and yeah, that first month felt ridiculous. I had an envelope just for coffee runs and I blew through it by the 10th. Started putting $40 in there every week and after two weeks I was actually making coffee at home just to avoid looking broke in front of the barista. The cash thing works though because I found myself skipping gas station snacks entirely rather than break a $20 bill. Still do it for eating out and my wallet definitely looks emptier but my savings account looks way better.