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Have you ever used the envelope system?

How long have you been on it?
Would you recommend it?


Asked by Erica_Smerica at 12:51 AM on Sep. 3, 2010 in Money & Work

Level 28 (34,798 Credits)
This question is closed.
Answers (12)
  • We have been doing the envelope system since 2008. Even though we are debt free, we still budget and use cash envelopes because we still have goals that we need to be frugal and save money for. It works great for us because it makes us discipline ourselves. I find it difficult to believe that people make a budget and stick to it when they are still out there using their debit cards (or credit cards) and not keeping track of their spending. With the cash envelopes, when the money is gone, it's gone! I don't really have to keep track on what I spent it on, I just have to know that it's gone and I spent it all and I have to wait until the next payday to have spending money again. The envelope system works great if you are serious about getting out of debt and controlling your finances.

    Answer by slw123 at 11:12 AM on Sep. 3, 2010

  • What is that?

    Answer by elly25 at 12:52 AM on Sep. 3, 2010

  • Yes, I have. I think it works great. You have to keep the envelopes up and away though because some people want to take money from them when you need it. Don't do that. When the bills are due and you can take an envelope and pay it, it feels great. You have to work out how much you need to take out each week to have the money when it is due.

    Answer by hsmominky at 1:08 AM on Sep. 3, 2010

  • Yep, we use it. We don't have a bank account, or any credit cards, or ANY loans. The true meaning of living within your means.

    Answer by fivefikes at 1:12 AM on Sep. 3, 2010

  • No, I have not ... I think it's kind of silly like one of the posters above stated. We set a budget (always paying ourselves/saving first), tweak it occassionally and stick to it. We've never missed a bill, we paid off our mortgage early, have no loans or anything, plenty of $$$ socked away for the kids' college and retirement. Our method works for us but if the envelope method works for you, then go for it.

    Answer by FootballMom85 at 7:20 AM on Sep. 3, 2010

  • YES! My husband and I did dave ramsey plan right after we got married and after 2 years we became debt free!!! I set a spreadsheet budget every month and we stuck to it!! It truly works if you stick to it!

    Answer by arbnmom at 9:47 AM on Sep. 3, 2010

  • Sure, it works great until the day you loose half your household income and then there is no money to put in the envelopes.... It is a great system if you start it with a stable income and life....but if you try it and then suffer a tragic setback like a layoff or cuts in hours, then it is very hard to stick to it... The best you can do is learn to budget wisely with what you have, because tomorrow you may not have it.

    Answer by WoodWitch at 1:32 PM on Sep. 3, 2010

  • Yes ma'am. :)

    Been doing it about 20 months now. It's a great way to track your money without actually tracking your money.

    Answer by Candi1024 at 4:22 PM on Sep. 3, 2010

  • we used the envelope system when we were first married and it worked great because we had a limited income. Then when my DH made a little more money we stopped using it.

    Answer by elizabr at 1:47 PM on Sep. 4, 2010

  • Sorry, but what is the Envelope System?

    Answer by SabrinaMBowen at 12:57 AM on Sep. 3, 2010