Use Cash they Say: Why I Can’t

Like many people, I have read multiple books by Dave Ramsey. I just love reading about money advice. There are many more books by other authors about saving money, reducing debt, retirement and so on. The thing is all of these books have helped people become better at managing their money, myself included. But there is one tip I have never been able to get on board with The Cash Envelope System. Of all things, this should be the easiest to conquer right? Not for me, it was a complete crash and burn.

What’s the Issue

It probably sounds a little weird to you. I don’t view spending cash as money. Yep, told ya, weird. Let me explain a little. When I have cash in my hand I know it is already out of my bank account. It is not going to affect anything there. To me, it is like I have permission to buy anything as long as I am paying cash. When I have to swipe my debit or credit card for anything is when I second guess every purchase I’m making.

My Solution to Cash Envelopes

Assigned Debit Cards. I have a separate checking account set up for items like Groceries, Auto, Christmas, and Birthdays. Each of these accounts has their own debit card assigned to them. In addition to asking my bank for different designs, I labeled them with Washi Tape. Each month I put my budgeted amount into that account. If I spend less than budgeted the balance it just rolls over into next month. Because this is a separate account I don’t have the temptation to spend more because it is not there. Just like the cash envelope would be but not as tempting.

Does the cash envelope system work for you? Do you use other techniques instead?