The Cashless Envelope System

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The Cashless Envelope System

I have a confession to make. I don’t follow Dave Ramsey to a T. I think all of his advice is great and he’s helped SO many people turn their finances around, but there is one area I don’t completely agree with, and that’s the cash envelope system.

If you don’t know what the cash envelope system is, it’s where you make a budget and add money to envelopes with specific categories and carry them around with you. Once the money in your envelopes is gone, there’s no more spending.

It sounds so practical, except for us, it’s not. I don’t like the idea of carrying a bunch of cash with me when I go out. What if my purse gets stolen? What if I accidentally leave my wallet somewhere? The whole idea of taking cash with me everywhere I go does not sit well with me.

But there is an alternative. Enter the cashLESS envelope system. Same concept; less anxiety. Win-win. Let me explain how it works.

The CashLESS Envelope System

  • Step 1: Create your budget for the next week — or two weeks, depending on how often you get paid — using the Paycheck Budget Worksheet.

  • Step 2: Using your leftover money from your budget, create your categories and budget for each “envelope” using the spending trackers found in my free Resource Library (sign up below). I recommend printing these on card stock.

  • Step 3: Keep them in your purse or wallet, track every time you spend, and stop spending when your budget runs out. It’s very important to not tempt yourself with overspending. Once the money is gone, that’s it. Don’t spend any more in that category until the next time you “fill up your envelope.”

Related post: How to Make a Budget When You Don’t Know Where to Start

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The cashless envelope system

It sounds so easy, and it really is. There’s no need to risk carrying cash with you, and you get the same results.

What do you think about using this method as opposed to the cash envelope system? I’d love to hear what you think in the comments below!

Until next time,

Mom for More. More wealth. More freedom. More peace.

I’m Kari, founder of Mom For More. Do you often lie awake at night dreaming about what it would be like if your family was debt-free? What if you could make that dream come true with a business that allowed you to stay home and be fully present with your babies? Mom for More teaches moms that they can start a home business, become debt-free, and gain more overall peace in motherhood. It equips moms with the tools they need to succeed in their finances, home businesses, and daily lives. You don't have to put your life on hold when you become a mother. It's okay to dream. It's okay to believe that you were made for more. I’d love for you to subscribe and follow along with me!

the cashless envelope system