Switched from a monthly budget to a cash envelope system and saved $400

I tried tracking every single purchase in a spreadsheet for six months, but I kept going over on groceries and fun money. It felt like I was just writing down my mistakes. Then I saw a video about using actual cash in labeled envelopes for those tricky categories. I started with $600 cash for food and $200 for eating out, split into four weekly envelopes. The first time I ran out of grocery cash on a Thursday, I had to get creative with pantry meals instead of just swiping my card. That physical limit made all the difference. By the end of the trial month, I hadn't touched my bank account for those areas and had $400 left over to throw at my car loan. Has anyone else tried this and found a category where cash just works better?

2 comments

2 Comments

ryan95210d ago

Gas money ever work for you?

tessac2510d ago

What do you do when you run out of gas money, just push the car? I tried it for a month and ended up stranded at a gas station three miles from home. The walk back with an empty gas can was my creative pantry meal moment.