3. Cash is easy to track and reconcile.
Once you assign your dollars to a designated envelope, count it as money spent within your budget. However, this only works if you stop spending when the money runs out.
Best Practices for the Cash Envelope System:
Options for Storing Your Cash:
1. A cash envelope wallet.
This is a great option if you like to carry all of your cash around with you. I personally prefer to only take the cash with me that I intend to spend during the day, so I’ve never carried a cash envelope wallet with me. But I highly recommend this cash envelope wallet if you want to give it a shot.
2. Laminated cash envelopes.
These envelopes are durable and hold up well with repeated use. I’m currently using these laminated cash envelopes to store my cash each month.
3. A coupon organizer.
The organizer serves the same purpose as a cash envelope wallet but is a better option if you prefer to keep your cash at home.
4. Plain white envelopes.
This is how I started my cash envelope journey. The only problem is that the envelopes aren’t durable. You’ll end up going through them quickly and replacing them often. But this option is great for those just starting out with cash envelopes and for those on a tight budget that won’t allow for fancy wallets and envelopes.