The concept is good. It is suppose to help you have a budget and stick with it. Supposedly, you find it more painful to spend the cash than if you use your debit card so you are less likely to be impulsive.
I am just the opposite. I am more likely to spend cash than I am to use my debit card. I know. Freak of nature. I don’t fit the mold.
I also find it much easier to track my spending when I use the debit card. If I need Matt to stop and pick up a few things on the way home from work, I can keep track of it in the budget. Or if he needs to buy something for a project, I don’t have to worry about making sure he has cash.Cash or debit? Which do you prefer? Click To Tweet
The one thing I can agree with about a cash envelope system is the budgeting aspect of it. For me, I have separate lines for different things in my Excel spreadsheet for our budget. I am still tracking every penny, just electronically instead of in an envelope.
While I am not anti-cash envelopes, they just don’t work for us.