• http://budgetsrock.blogspot.com Melyssa

    I use the envelope system because it’s very real to me. I get to touch the money instead of moving it from account to account.. or swiping a card. And it is true, for me that is, using cash really does hurt.

    Yes, it’s an old school approach, but I actually get to feel and touch the money. I only have one ledger to balance because I only have one checking account. This makes it easy for me. I’ve been doing this for several years now.

    • Martin Dasko

      I find the envelope system to be the most basic, yet most effective tool for budgeting your money. I’m glad to hear that it’s working out for you Melyssa.

  • http://vertex42.com Nate Hall

    The reasons you listed for people not budgeting are spot on. It’s hard to keep account of spending mistakes we’ve made. The budget helps to avoid some of those.

    Each of these could be helpful suggestions depending on the circumstances. We tried the envelope system in college, but for us, it was a hassle because you always had to remember the envelopes or to pull the money out and it became somewhat burdensome. The new Mvelope system might alleviate that a little.

    #2 can be another great way to keep things organized and to avoid spending that money on something else.

    • Martin Dasko

      Hey Nate, I understand your concerns. The envelope system can get annoying– sort of like remembering to floss every night. I can promise that you do get used to it eventually though.

  • https://myjibe.com Adam Quirk

    Hey Martin, this is an excellent post, and the envelope budgeting system is something we’re intimately familiar with. We actually just launched an online personal finance app last week that is a virtual envelope budgeting system:

    Thanks for your posts here. Moneycrashers is one of the blogs we keep a close eye on here at MyJibe.

    • Martin Dasko

      Glad to hear Adam.

  • http://financialplanningtips.net FPT Guy

    The envelope system is brilliant! Never thought of that. I used credit card and paypal mainly. But I have trained myself to enter stuff in each day into my Excel spreadsheet – yes a bit hardcore.

    • Martin Dasko

      Yea that is hardcore man. If you can keep that up, then I’m totally jealous of you.

  • http://change-is-possible.net Heather

    We just have one envelope for all items that are not bills each week. Money is for groceries, eating out, gas, doctor copays, things that come up, whatever. It’s worked really well for us. I had a “Reader Story” about it on Get Rich Slowly a few weeks ago: http://www.getrichslowly.org/blog/2011/01/09/reader-story-how-our-simple-no-category-mostly-cash-budget-accidentally-paid-off-the-car/

    • Martin Dasko

      Thanks for sharing this Heather.

  • Mary

    I really liked the envelope sistem. I think is easy to use. Thanks

  • Thomas Watson

    There are also personal finance software that are extremely easy to use.

  • Snappy Budget

    I had money worries and did not feel in control of my finances. I managed to get quite a lot of tips from the tips above and did get in control. As a result and to help others I have created a budgeting application on the principles. It can be found at http://www.snappybudget,com

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