The Cashless Envelope Method
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- čas přidán 18. 04. 2020
- Stuffing my cash envelopes has become one of my favorite days of the month, There's something magical about watching the numbers you have written down on your budget turn into physical cash in your hand.
With the cash envelope method, people always assume you need cash for it to work. It's true that your money becomes more tangible if you use physical cash, but the method can still work and have the same psychological effect without it.
It does take a little more self-control to use the envelope system budget without cash, but once you have your system perfected, it gets easier to manage.
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I'm the blogger behind www.thebudgetmom.com. I have a rambunctious 6-year-old son, live in Washington, and I'm passionate about helping people with money management and personal finance. Let me know what you like to learn more about! Leave me comments and suggestions on my video and let me know!
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I know this doesn't have to do with what you where talking about, but I wanted to tell you I paid off one of our debts on Friday and saved us over $1000 in interest. Thank you for doing the videos you do. That have help us out.
Awesome! I was able to pay our tires off and start a category for car maintenance.
@@aprocrastinatorslifewithka7912 that’s great. good for you!! 🙌
I’m so glad to see a cashless option described here, this was the missing link I’ve been needing as we’ve been advised not to use cash right now if we can avoid it. This is such a help. Thank you
I also like the idea that another viewer mentioned about continuing to use envelopes for the cashless system. You can still track on the outside of the envelope and place your receipts in the envelope. Your videos are so clear and detailed.
Good idea 💡
I use the cash envelopes as if they had cash, but since I run ALL my life on cards, I use the envelopes to track each receipt. So essentially it’s what your doing here but I keep the receipts categorized into the different envelopes. Helps with taxes at the end of each year also because I can throw my 11 envelopes into a folder marked January/February etc and every receipt is there categorized by month and date.
That's a great idea. I'd like to know how you handle receipts that might have more than one expense type on it.
I've just started this month and this is how I will be doing it. I get some tips from work so those will be the gas and food/eat out envelopes but I love doing these.
@@srioti Just an idea, you could put the receipt in the envelope where the majority of the items belong, and then put a mark on the other tracking card, or a note in that envelope, that XY spending has the receipt in Z envelope.
I print out fake money and put that in my envelope. My neighbor uses Monopoly money. lol.
@@heatherguski3911 I print out fake money. And track it on my ledger when it’s spent and I remove the fake cash from the envelope and put it aside until my next paycheck. Etc
We use an out of state credit union, and when I came across your method, I wanted to use it, but couldn't do cash. So I came up with a cashless method and it is similar to this! I love the idea of the tracker cards for a wallet! I keep my category trackers in a binder with my other budget info. We paid off all our consumer debt last month!!! 😁
Two points: I actually tried cash and realized that it is easier for me to spend "real" money than to pay by card. Probably because of the bad conscience I grew to have due to all the cash-only videos I watched :-) Thus, I pay by card.
Second point: I use envelopes anyway and put the recipts in there, while also quickly noting the amount spent onto the envelope (I use plain white ones, that get thrown out after each month). Then you have a nice and ordered collection for the final monthly breakdown.
My husband and I started pulling out cash. Then life happened and then we just stopped pulling cash out. We realized that as long as we kept a record of what we spent with a limit in each category, it worked. I began carrying notecards with me. So similar to your method. It just works.
Thanks for sharing this idea! I think I will do the same! The checkbook just wasn't doing it for me. I still saw the money in there and not the category it is for.
Yes thank you! I am so afraid of losing my cash envelopes and almost considered using play money for a visual. 😂
@@melodyanderson2982 I know two people who do this! Whatever it takes!
Over the last year, I started using envelopes again.. here’s why - I’m still able to track it on the envelope but I can now use the envelope to hold my receipts. ;)
I am disabled and primarily home bound! This is such a gift for me! Thank you!
This is a perfect idea! You can always do it on your phone too! This way you don't have to carry all the pages around. Thank you.
Yay,cashless!! I never have cash. Thankyou for this!!!!
I know this post is a few months past the video post date, but I just have to say THANK YOU!! I, as a single mom of two (now grown) boys, have budgeted for years. I have always tried to be very careful with my money and put it to the best use. Through the years ( i am 50 and single) I have tried every method, and until now have had a frankenstein budget of many different ideas. But when I found you on CZcams, that is changing. Your method is absolutely amazing!!! And, to see you have a cashless system makes me even more happy!! I had given up cash envelopes because in 2019, while at the Dr., one of many stops that day, my car was vandalized and over $500 was stolen and that was very hard to recover from. Thank you so much for your plan and sharing it with the world.
Hell yeah I have been waiting for this, you are a real OG!!!
I have used my card for the last month and it's such a difference. I cannot wait to use cash again. It makes you just so much aware what you are spending.
Waiting in line at the bank at the drive thru has been a complete nightmare! The long wait is just ridiculous, so I’ve been doing cashless.
Candice Dodd has this experience last week. Sucked for sure!
Thank you! Thank you! Thank you!!!!! This was SO helpful for me. I have been trying to transition and just could not wrap my head around it. You are truly the BEST!
So useful, i use a cash binder but I don’t feel very comfortable keeping many money at home. I bought some fake euros and use them as place holder for the envelopes where I’m supposed to put more money in order to visualize and keep track of the real money I save on my bank account. Thank you for your videos.
Thank you so much for this video, Miko! I’ve been a cashless spender for a while and have been tracking expenses in a check register, using a separate page for each spending category. I like your cashless trackers much more!
Finally a system I can use. I don’t use cash, so this is perfect for me. Thank you. New subbie.
Glad to see this works for so many! I'm going to try this but with gift cards... Purchasing a particular amt and ONLY having that available will help my overspending issues
That is pretty smart too because you can get gas perks or just a little extra cash with promotions that often happen.
THANK YOU! THANK YOU! I’ve been waiting for this!
Thank you! This is how I have been trying do it for two years! and your video helps me to understand what I'm doing! Bless you!!!
Cash makes me nervous, once it's lost or stolen it's gone for good. Regardless of your preferred process, please check your bank account online everyday. It's the best way to catch and report fraud asap & deduct any payments or purchases your may have forgotten.
This makes so much sense and the piece I was missing. I have an expense tracker but stopped using cash last month. This helps me prepare for my next paycheck as I can still track (and use the cash I have or put it back in the bank)
I'm pleased to see a cashless system. I worry about being burgled and all my money being taken.
This is great as I don’t like having cash in envelopes; this method was clearly explained. Thank you xx btw totally binge watching your channel.
I’m cashless and I love this! Brilliant Miko! Thank you!
I recommend the YNAB app (You need a budget) you can have different categories and set amounts of how much you want to spend for the month. You can link your checking account and it will pull through all the transactions and you can see how much you have left in each category as you spend
OMG I LOVED the cat making an appearance. Too funny
Great video! I'm usually an all cash budgeter but sometimes you just can't get to the bank, so it's helpful to have a method for cashless envelopes that goes with The Budget Mom method.
This is EXACTLY the video I was looking for. Thank you very much!!
Digging this video and binging all your video the past 2 weeks. Thank you for all your tips
Love this!! Great video. It’s so good to be organized it makes things so much easier.
This is what I do, and you tips was what I was missing thank you so much !!!!
This is absolutely genius!!! I seriously seriously LOVE this method!!!! Thank you so so much! I always had a hard time tracking my debit expenses. You made this seem so simple. I’m going to try it out for my May expenses. 🥰🥰🥰🥰🥰🥰🥰🥰🥳🥳🥳
Swapping over to cashless for a little while so this is super helpful for me.Thanks
I’m new to budgeting. I’m pretty frugal and I like to save my money but I want to be more aware. I was just about to get into cash envelopes but I thought it would be too much of a hassle of going to the bank each month and I didn’t like the idea of having cash in my bank and cash in person. I love how simple and easy you explained this method thank you so much!!
Ok, more videos with Kitty please! She's super cute. Thank you for the video. I'm going to try this next month because I had planned on using actual cash to stuff envelopes.
the ending bloopers were a breath of fresh air lol
I have never been a fan of cash. I bought your budget by paycheck printables a couple of years ago and have been using this method from the beginning. It works for me.☺
Great video for a cashless system - love it. I use a great little app on my phone very simple it's called Budget with Envelopes it's an open envelope with a green card in it, sometimes it's a little difficult to find. Very useful for on the go budgeting. Also I saw a vlog where a couple use Google sheets on their shared Google account which means they can both see what the other has spent and keep on track with each other x
Clever. I know not all banks or credit unions do this but I am able to open as many free Chequing accounts as I need. So I have one for each budget category kind of like a virtual envelope. Works well for me.
This exactly the type of video I was looking for!!!
This makes a lot of sense … thank you
Glad I ran into this...THANKS!!!
Found this and the Filofax wallet through you- thank you so much!!! I hope Kitty has been behaving herself during COVID!
I really enjoyed this video. I really like the format of your workbook but wasn’t sure how it would benefit me since I am a cashless budgeter and I budge monthly instead of per paycheck. This video was very helpful.
Thank you so much this is what I'm looking for since I still love the points that I collect (free movie or food) from my bank, this will be big help to monitor may spending.Just got it now too.
I love these so motivating 👍
Hi merry chrismas budget queen. 💛🧡
Thank you for showing us how to do this. I'm going to start in May. Living in Ohio and being part of the vulnerable population, age & medical issues, our governor has put us at Phase 3 of our reopening plan. This population will not be able to resume daily life for close to a year so I had better get used to the cashless envelopes!
Hi Kitty 😘🥰. It makes sense now. I love your method. It seems to be only one that works well for me.
Cashless has always worked for us. I now keep our category funds in ONE account and it has improved our overspending TREMENDOUSLY!!! It's too easy to overspend in any one category, but using a separate checking account from our bills helps us to not only NOT spend our bill money, but also to see in one location what we spend for our lifestyle. This helps us to easily see what our priorities are. Apparently, EATING is our hobby!!! hahahaha
We do like to use the cash envelopes for Vacations and our Auto Maintenance sinking fund. :)
This is great Miko! Thank you so much for all that you are doing for us . 😊❤
Thank you thank you THANK YOU! I -H-A-T-E- cash. I love the organization of cash envelopes... But I refuse to use cash. This is solo helpful! It's still early in March, so I am going to get started now! So excited!
Awww...your kitty is adorable! She couldn't help herself by making an appearance : )
Thank you Miko 🙏😊
Hi Miko! I wish I'd known all this when I was working; never budgeted but I always had money in the bank. Now, retirement is upon me and I live month to month and have a whopping amount of debt. I'm a credit/debit card user so I'm eager to try this method. I'm going to enroll in your e-mail course. Thanks
Hello 👋🏻. I’m a new subscriber and enjoying this way of starting to budget. What is the next video to watch? Thank you for sharing. Take care and be well.
I use excel and a tracker for this method and a budget planner
Thank you for this video I was contemplating on going back to using my card but tracking what I spend so I don't overspend. I think for the month of May I will try it out but just take out cash for my sinking funds envelope!
Awesome! I just found your channel about a week ago. I’m very much a visual person and your videos and this method help me a lot, thank you!
I am so glad the videos help😍😀😂
Love the information, but the cat at the end was priceless😂
I have been using Simple bank which has built-in spending categories. It was kind of like a pain-free digital envelope system that worked automatically within online banking structures. HOWEVER. I just got news a few weeks ago that it will be closing as a feature in the spring of 2021 and I'm so sad! I remember how much time it took to paper budget and keep up with tracking expenses before Simple. I'm so thankful for this video - thank you for doing the thinking for me lol.
I’ve transitioned to the cashless method and I think I actually might like it more, I will stick with it through May then decide if it works better for me
Thanks for the video! I've been wondering how to make it work!!!
I use Simple Bank. It makes this so much easier. I love it.
You make your expenses. They're all in envelopes, basically. Same with goals. Those would be sinking funds.
Every time you make a purchase you can tell it to auto spend from the envelope or goal.
I'm trying to get use to the budget by paycheck method still..i am not really down with the cashless system..i am super excited and can't wait for your budget by paycheck workbook to be available this year 😀 luv from California.
I think most people are moving to this but I’m actually using my credit cards and paying after each transaction because I don’t want to risk my checking account being breached and drained
Onajourney Life I ditched my debit cards years ago for that exact reason. My credit cards have been compromised a couple of times and I thank my lucky stars it wasn’t my debit card and I was able to recover the loss.
Same. I never use my debit for paying. It is safer to use credit cards especially for online shopping.
My parents have two checking accounts, one for the inflow of their salaries and another one they send money to when they are going to spend money, and only then. They transfer money the day before for their larger payment too like mortgage and when they pay the insurance. It's a method I've adapted as well since I have no discipline with my credit card (yet)
From what I know and it could just be my bank but my debit card has the same protections as my CC. Also if any unusual or out of state purchases happen I get a text message and a phone call from my bank verifying the purchases and if it wasn’t my purchase the bank immediately froze that number and sent me a new card. My husband used to travel a lot so when he was out of town we would get these often. Maybe check with your bank and see if it is the same?
Just to clarify, you spend at store and immediately pay your cc card? And so on for each purchase, or do you go back and do it after a few days? I'm curious because I've considered it too.
Wow Just what I needed. Thank you. I was wondering if there will ever be an option on the printables to printout the bill tracker without the debt bit I see you cross off as well and maybe have a larger extra saving section? Thanks again stay safe
I like the way you are tracking your CC/debit purchases! Do you think you will continue to do a cashless system in the future, or switch back to cash envelopes?
Before the virus, I had been taking out cash for two-week intervals and placing them in envelopes. Since the outbreak, though, I've only taken out 60.00 every week and using that cash to buy groceries and personal care items (and buying lunch at a local place at least once a week to help their business). I then put the leftover cash back into my account before taking out another 60.00. Once the lockdown is gradually phased out where I live, I intend to keep going with my method of buying essentials via cash. I just like using cash for day to day expenses, and that the clerks I deal with are all wearing gloves when I hand them the cash.
Once this is behind us, I have every intention of going back to my earlier two-week withdrawals and budgeting envelopes. I just prefer using cash, I find I'm more mindful of what I'm spending with cash than when swiping a card. But that's just my opinion. Do you intend to go back to cash when this is over? Just thought I'd ask.
It could really help the local businesses if you could get rolls of coins to pay with there some. The coin shortages are hurting some businesses.
Great video! Thanks for sharing! After this pandemic is over, will you go back to cash or are you finding you like these trackers better?
I found this video to be really helpful and a great tip! I recently started a channel breaking down updates on the stimulus package and the stimulus checks. Hope everyone can save their money during this difficult time!
This really what I needed! I'm trying not to put stuff on the credit card. And I'm finally where I can have my gas and diaper $ set aside, but I don't want to hang on to cash.
I use a budget planner and an app on my phone. The app is a budget which works on the envelope method. I have an envelope for everything. When each of us is paid I enter the income and then fill the appropriate envelopes according to my budget planner. My phone is always with me so I always know how much money I have left to spend in each envelope/category. I also enter all transactions in my paper budget planner. I have used this system for several years and it works great for me, especially with the craziness we are now living in.
Great idea
I do the same but i use fake money to keep track! 😊
I am a new subscriber and just in LOVE with your videos. I am in Canada so your book is a bit more expensive than for your US friends! But still 100% worth it. You've changed the way I look at money and helped me start saving for a down payment on a house (despite the INSANITY of the housing market right now)
Anyways, my question is what printer do you use to print out your trackers and what kind of paper? I do know it was mentioned in one of your blogs but that was several years ago and I don't know if you use different paper for your trackers vs your envelopes and sadly I'm not sure my little printer could handle such beautiful cards.
Help a girl out! :D
Thank you again for your vids!
I love the idea of cash envelopes but I like to see them made with photos that way we get to see some of our favourite photos
I have been doing this for a long time, since I didn't like all that cash in the house. I have created an excel tracking sheet for all my sinking funds.
“Kitty!! I will stuff you in there with the dog!!”😂🤣 always great videos, Miko!
I recommend the Every Dollar app for cashless envelope tracking. I've used it for quite some time
So my cats are online trying to locate you ever since I told them your cat's budget is $110. 😹. Kitty is adorbs. I cannot get with the cash envelopes...I struggle with temptation. I am going to try a few cash envelopes mixed in with my debit/credit transactions. This might work for me. Now to get trackers...cuz index cards are no fun. Great video. Two paws up!
Thanks so much for sharing your experience, we all are not able to continue to cash only due to Covid-19. I went to the bookstore and they did curbside for my transaction but declined my cash and stated they have no cash in their store. They are only using a card method. Also, will you be launching a new/updated Budget by Paycheck workbook? Thank you for your wisdom.
Kitty is just so cute! Haha 😂
Nice to see this cashless method. I dont do cash spending only bc I could never get to my bank before it closed. I use the every dollar app and track things there under each fund I have and it does the math for you. You are able to see what you spent and how much you have left in each category. It works for me bc I always open it before I go to swipe. This doesn't work for everyone, like you mentioned the psychological aspect of using cash is what's the eye opener for some.
Hello Nancy, Do you use the free or paid version of Every Dollar app? I've looked at it awhile back.
@@doxiedonna I use the free version. The paid version has more functions to it and I think it even links your bank account to it. I truly write EVERYTHING down. If you watch her videos she has a spending tracker and that's what I think you need to learn to get good at. The electronic version doent work for everyone, some people need to write it on paper to see the big picture. I still write my budget down and make a plan every month.
This is why my budget went out the window the last two months. I stopped using cash and didn’t do this. I need to keep my receipts to better determine the categories, and do it the day spent when I get home. Ug.
My cats name is Kitten haha.
Im mostly a card spender anyway, but i think thos is definitely what i need to keep track of everything... i might move to cash when this is over when people are more accepting of cash again 🤔
When using the cashless trackers, How do you handle change? Do you round up like you do for your cash envelopes and then how to you handle the change different between your expenses tracker on your workbook and your cashless trackers?
Wow so funny I been doing this for 2 years. Now I have a name to it. Yess. 🙌
Will the Cashless Spending trackers be available again on your site? The link in this video takes you to cash envelopes and I really want the cashless spending trackers you shared in this video. Thank you! 😀
I have a question... the variable expenses... the actual do you count them up and put the amount you spent before the next pay check/budget? Or do you put those in at the end of the month? Do you keep a transaction tracker for each budget for easy figuring out???
I'm loving using the cards. Do you recommend using a new card each month, or using it until it's full? Some categories I have an "envelope for" aren't getting used, like gas. Since we aren't going anywhere and had full tanks to start with, we have spent $0 and it is probably going to stay that way until quarantine is lifted. I hate the idea of wasting the cards. Thoughts? Thank you!
Not the budget mom but I don't see why you can't use it until it's full. Maybe put a line using a highlighter to signify a new pay period? That way it is easier to know the division at one glance. 😊
Can you do this for credit card spending if you pay it off each month? For example, everything i spent on my Discover using my budgeted amounts for each category for 1/5-2/4 is due 3/1: how would I budget for that, track it, and close out the months in those instances? I use my Discover card because sometimes I get the cash back rewards. Thank you.
My biggest challenge is my credit card. I only have one for household and one for business. Since business is slow right now I am focusing on my household budget. I am trying to create a new habit of cash only. My biggest issue is groceries! Since I am now having my groceries delivered because my 8 yr old Mom is with me right now it's safer. Any tips on spending less on groceries. I am working really hard on tracking so thank you for your method. I have your Budget workbook bu have not been using it to it's full capacity like the Expense tracker. I was putting it into another book I carry but only update periodically. I am going to work really hard on tracking daily because I feel it might help with my credit card. Also Amazon is way too easy! Any tips are greatly appreciated. We retire in two years and getting this program down is important to me because we will be traveling via an RV and selling everything.
How did you punch the holes for the budget trackers to go in your Filofax?
First time here, really liked the video. How come there is a 50 euro bill in that wallet?
I am trying to sign up to be notified when your work books come back in stock. I click on it and there is no where to sign up. What am I missing?
“Gosh Dang it Kitty 😹” why do they always have to be right where you are working...like my laptop!!
Could you please explain what should be done with the remaing amount (if any) for these cashless categories? I know you use a rollover system with your cash envelops, but let's say I don't spend my whole budget for food... How do I roll it over if it's cashless? I'm not sure where to include these small amounts when closing out my budget...