Update: I thought the cash envelope system was just for people who can't use a debit card.

I tried it for a month with $400 for groceries and $150 for gas. It forced me to actually see the money leave my hand, and I cut my grocery bill by almost $80. Who else has tried this and what categories did you use it for?

3 comments

3 Comments

shanem3722d ago

Wait, you only spent $400 on groceries for a whole month? That's the real shocker. My family would blow through that in two weeks, easy. The envelope idea is smart, but that number is wild to me.

richard_anderson21d agoMost Upvoted

Heard a podcast where they used it for eating out and fun money too. Did you find it hard to stick to the cash only rule?

the_julia21d ago

A finance blog said the envelope trick works because it makes you feel the loss more than a card swipe. @shanem37, the grocery amount depends on location and family size for sure. It's a solid method for making you stop and think before you spend.