Cash Envelopes

I feel blessed that Matt and I have very similar views about money and debt. Before we got married we created a budget, and we have successfully tracked our spending in an Excel spreadsheet for the past two years. But sticking to our budget has been another thing.

We don't go out and spend money on frivolous or expensive items. Nor do we usually go in debt, but we seem to always go over budget in our dining out and grocery category each month. This means that at the end of the month we have less to save or invest. I feel discouraged when we can't get a handle on the amount of money we spend on food. Of course food is a necessity, but when we don't stick to our food budget, I feel as though I am not being a good steward.

Mr. Price recently suggested we try the envelope system, and I thought it was worth a shot. It seems like such an old school idea. And I think I had the impression it was for people who had trouble balancing a checkbook. We've been using the cash envelope system for two paychecks, and, for lack of a better phrase...it has been AMAZING!

It has really opened my eyes. I was skeptical that we could do it, because at times, we've gone over our food and dining budget by $50 to $100. The first time we used the envelopes, we came UNDER budget! I was completely surprised.

Dave Ramsey was right - if you have cash in your pocket, you are more likely to think twice about how you spend it. You don't experience any pain when you whip out your debit card to make a purchase like you do when you hand someone cash for a purchase.

Not only does using cash envelopes help us stay on budget, but it also makes balancing the checkbook at the end month a little easier. Not to mention that many banks will soon be charging a fee for using a debit card.

I am a huge fan of the envelope system now! Hopefully we can keep up the good work. If you are interested in learning more specifics or about our Excel budget spreadsheet please e-mail us.