I love cash. I am sure you have heard this before. I love the freedom and structure cash gives me. I love that I can plan my month (or week, or day) out and know how much money I have for that time.
There are way too many things that I am in charge of, and one less thing to worry about makes my life just a little easier. Cash makes my life easier.
There are many benefits and advantages to using cash (which we can talk about in a minute) but let’s face it. We want something beautiful to carry around all that cash, right? So what are the prettiest and best cash envelope wallets AND how can we make a wallet into our own custom cash envelope wallet.
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What Is The Cash Envelope Wallet System?
Essentially, the cash wallet system is a system similar to using envelopes for your cash. Except there are no envelopes.
You still have the same categories for money minus a way to budget the proper amount of cash in each of the groups you might overspend in.
You would decide on an amount that you will spend, place it in an envelope (or something similar) and spend as needed.
However, when that is gone, it is gone — no whipping out the plastic or taking from another source.
You just have to wait for the next paycheck.
For example, groceries. I spend about $400 a month on groceries: $ 150 every two weeks and $100 a month at BJ’s.
My cash envelope wallet gets that amount of money each month.
If I have extra, it will go in the miscellaneous envelope to spend on whatever we might need it for.
Having the right system for using cash is essential.
Where To Keep Your Cash
Some people use actual envelopes. They will grab their grocery envelope when they are heading out to shop and just use that.
I have seen people who use a Filofax binder with zipper pouches to organize their cash.
There are others who will go to the Dollar Tree and grab a coupon organizer to keep with them as they need it. Everyone will find a system that works best for them.
I do not use envelopes in the most common sense of the word.
Even though it is based on the cash envelope theory, it just doesn’t work for me.
A few people have created these cash envelope wallets that are affordable and fantastic.
I have tried a few different cash envelope wallets over the years, and I have created one that works so well for me.
It allows me to use my favorite wallet that I got for Christmas a few years ago, and I know the possibilities are endless.
First, let’s go over the most popular cash envelope wallets.
My Top 5 Best Cash Wallets
1. Savvy Cents Wallet
The Savvy Cents Wallet was my first cash envelope wallet, and I loved it. When I got mine years ago, they had limited colors. Mine was a white and teal chevron. This pink is fantastic – I might need to order this one!
What I like most about these wallets are the slots they have in them and the plastic tabs to label your categories.
As far as price goes, it’s pretty affordable and will last. I found my tastes had changed and with a new Michael Kors wallet for Christmas, I wanted to switch it up.
2. Bella Taylor Wallet
The Bella Taylor Wallets are a cloth design that is quite adorable with the buckle hardware in the front. I did find the colors and designs to be quite limited, but the inside is bright and easy to get to.
There are little tabs to label each category, but they are a tad hard to read, in my opinion. When you are standing in line at Target, the last thing you want to be doing is fighting with your money.
I find the raised tab dividers easier to manage. But if you are looking to be subtle about it, you might enjoy this one!
3. Divvy Up The Savvy Spender Wallet
The Savvy Spender Wallet by Divvy Up has one large compartment to house fabric nylon envelopes. These envelopes come with magnetic closures and labels.
For me, this does not appeal to me. One more moving part to get lost. I find as with the Bella Taylor; the names are more difficult to see.
I suppose once you get used to which color is assigned to which category it wouldn’t be as confusing.
For me, this seems awkward.
4. Dave Ramsey Wallet
Dave Ramsey, the author and founder of The Total Money Makeover and the guy who made using cash cool again, has had a Cash Envelope Wallet out for YEARS!
It has paper envelopes inside. You can order the replacement envelopes, which is excellent.
It comes in limited colors and styles, but it is very affordable.
It has a tracking notebook and envelopes as well as all the other important spots for receipts, change, cards, and a checkbook.
There is also a smaller black version for men or others who don’t care for something this size.
5. RC by Rachel Cruze Wallet
Dave Ramsey’s daughter Rachel came out with RC by Rachel Cruze Cash Envelope Wallet system that uses tiny binder clips inside the wallet to organize your categories.
The wallet comes with five small binder clips.
Honestly, you can save money and just use any clips for this. There is nothing super special about this system.
It is a very pretty wallet, but if you have something you already like or want to spend less than this (even though the price is reasonable), you could go to TJ MAXX or Target and get a nice wallet to do the same.
I find this wallet to be overpriced and think there are much better options!
I find these clips to be bulky and very inconvenient. I do not recommend them. I used paper clips for a while that had tabs on them.
They were labeled and that worked better than the binder clips.
But still, I felt like every time I went into my wallet, I was fumbling around.
How To Make A Cash Envelope System Wallet
After using the Savvy Cents Wallet for many years, I received a nice Michael Kors Wallet for Christmas. So I had to come up with a way to make it work for me.
As I mentioned, I tried all sorts of clips, and they all seemed awkward and bulky.
I found myself fumbling around trying to get the clips off and then trying to hold the wallet, clips and money felt clumsy.
So I needed to create a system similar to the Savvy Cents cash envelope wallet that had worked so well for me over the years.
I traced their dividers and created ones that fit perfectly into my new wallet.
Then I went through my stock of scrapbooking paper and found patterns that I loved.
I traced them, cut them out, used my label maker to create custom labels and then laminated them!
This is by far the best system I have ever had. It’s mainly a filing system for cash!
How Do You Start A Cash Envelope System?
It’s easy.
Once you decide how much you need to fund each of the categories and what type of system you want to use (envelopes, wallet, coupon accordion file), then you just support your categories.
Remember, you don’t necessarily have to carry all the cash around with you all the time.
Once your category cash has been spent, DO NOT SPEND ANYMORE!!! You are finished until next paycheck or the next month, depending on how you budget.
You may NOT “borrow” from another category or use the debit card.
There is a relevant amount of discipline involved here. Don’t waiver. Stay strong.
What Are The Benefits Of Using Cash Divider Wallet?
Track Your Spending
It is so much easier to keep track of how much you are spending.
You know for sure that you will not pay any more than $400 per month on groceries because that is all you have!
Your fun money spending will not get out of hand if you only have $25 per week to spend.
Can’t spend more than $150 per season on new clothes if you just have $150 cash in your wallet!
Zero Interest
You will not pay any interest to a third party when you use a cash wallet system.
You put the money in your wallet and take it out when you need to make a purchase.
No interest on that purchase. And no bill to pay (or not to pay) at the end of the month.
Yes, some credit cards will have zero percent interest for a time, but it won’t last forever and shuffling your money around constantly to avoid that interest hike doesn’t sound like fun.
Pay cash. So much easier.
Less Chance Of Stolen Identity And Theft
Yes, there is always a chance that someone will steal your purse and all the cash in it but those instances are probably rarer than someone hacking the TJ MAXX database and taking your information.
Also, you do not have to carry ALL your cash in your wallet all the time.
If I am going shopping, I know I need my grocery cash and maybe my clothing cash as I know that my youngest needs shorts for his school trip to Florida.
If someone gets ahold of all of your information through your credit card or even debit card, it will take a lot more work than replacing a few hundred dollars cash.
I am willing to take the risk.
Psychological Benefits For Using Cash
Cash (for most) is just harder to spend. You can see it, feel it, smell it and understand that it took you one hour of work to make that $30!
An hour of work that you may or may not love. But one hour of work out of your life.
Do you want to spend one hour of your life on that shirt?
If you have a hundred dollar bill, and you want to buy a cup of coffee, you may think twice about breaking that 100 dollar bill and just go home and make your coffee.
You may be apt to understand cash more if you are holding it in your hand.
Use Cash And Get A Deal
I have offered retailers cash and gotten a discount many times.
I got 20% off a couple of tuxedos for my oldest son’s wedding by paying in cash.
I rented a porta potty for a party and got money off. I have paid less for tv at a privately run electronics store by paying cash.
Purchasing a used car (or any other item) from an individual with cash in your hand would increase your probability of paying less.
They know it is a done deal and there is no bank or check involved.
I am all about saving money. And I am all about the Benjamins!
What Categories Are In My Cash Envelope Wallet?
Here are the categories that I have in my wallet. Like I mentioned above, I rarely if ever have cash in all of these at one time.
- Groceries. Self-explanatory. BJ’s money once a month would also sit here.
- Eggs. We get our eggs from a farm, so I like to have a separate spot for this. There is to place to get change, usually, so it helps to have the exact amount.
- Mine. Yup…all mine.
- Gas. Yes, I use cash for gas.
- Bella. This is our old lady pup, and this is for anything that pertains to her – spa days once per season, food, or vet.
- Date Night. Twice per month, we go out on a date night — nonnegotiable.
- Misc. Whatever we might need. Car parts, home repair money, DMV will all go in here with a proper sticky note if required.
- H & H. House and hygiene. So, Target. I head there once a month with a list.
- Gifts. This could be anything from a birthday to Valentine’s Day.
- Clothes/Hair/ Rx. Shopping, haircuts or prescriptions would get stuck in here. This would also have proper sticky notes if needed.
I can’t imagine not using cash. I owe everything to deciding on a cash system.
If you are part of the cash-only group, where do your Benjamin’s live?
Sara is a wife, mother, and creator of Frozen Pennies. With a degree in English, a former teacher, and a Certified Financial Coach through Ramsey Solutions, there is no better place to learn about debt freedom, budgeting, and overall frugal living.
Back when we were hardcore about cash, we used the envelopes from the bank haha. We actually still use those for the cash sinking funds we keep.
I did look at a few different wallets – like the Savvy Cents one – but we ended up going back to a credit-card based budget (which sounds like an oxymoron, I realize haha) before I pulled the trigged and bought one. If we go back to cash-budgeting, that’s like the one I will go with!
Bank envelopes are a great idea!! I have reused them for many things, too!!
Blessings on everyone who makes $30/hr…
Hi Sara, I think your automated email subscription service isn’t working 🙁
Hi Naomi! Oh No! What can I help you with?
i dont think its working either… i tried signing up and it hasnt sent the email!
I love the idea of using a wallet system! I’m going to make one using an old coupon organizer I have. Thank you for this never heard of idea.
On a lighter note…I thought “Eggs” was a nickname you used for your husband and this was where you kept his fun money. ?
You are very welcome! It really is my answer to overspending! And we get our eggs from a farm so it’s nice to have exact change! Thanks for stopping by the blog! Come back soon!!
So, just asking, how much do you put in the cash pockets each month and what happens if they don’t get spent? I mean do you just keep adding to them too?
Hi Jennifer. The amount varies, depending on the budget and its every two weeks. Eggs are only $8. Groceries are about $150 these days (for every two weeks). My spending money is $40, date night is $75. Most of the other categories are only added to as needed. if I am going clothes shopping, I will put money in that slot. If there is money left over, I will stick it into savings or add it to a category that I feel needs a little extra that week. Sometimes, if there is grocery money left over, I will leave it if I think I might need it.
Great way to budget your Weekly, bi weekly and monthly bills based on how your paid ,. I started buying myself a gas card and grocery card once a month , I use a sharpie pen to keep up the written balance on the card after every purchase and yes I I use cash to buy the gift cards every month ,so much easier using card at gas pump then going in with cash
What a great idea with the gas card! That is SMART!
How do I do the cash system when I need to pay bills online? Example medical bills, car payment, utilities.
That is an excellent question, Patricia and thanks for stopping by. I only use cash on things I tend to overspend on: areas like groceries, Target, Date Night, etc. I pay those regular bills right out of my checking account on payday. Most are paid online with my debit Visa card.
I requested the free cash envelopes and signed up, but have not received an email for the link. How long does this take? I checked all inboxes, including “junk” email.
I just emailed you, Leesa. Please let me know if you get it.
Dearest Marisa, Coming from someone who lost her job due to illness and has to support 2 teens, one a juvenile diabetic and 3 of the 4 members of our family have major food restrictions/ allergies that greatly impact our budget all with only one public servant’s income and no other source of assistance, I deeply feel where you are coming from. The first step was really hard for me too because I was so angry about everything. It takes a lot to stop feeling like You’re a victim and the system has failed you. It sounds dumb but the key to the whole DR program’s success is accountability. You’re wasting your time thinking about how the situation others are in is so much better when you really should only be concerned with the one that you can change, yours. You’ve got this! Have faith in yourself. Stop all the negative thinking and know that you and only you can change your situation. Lots of hugs and blessings of financial peace for you
What grocery and gas card did you use.? I only ever see shell n Mobil. They are the most expensive. I’ve never seen groceries cards unless you mean get a Walmart card n designate it to groceries only. What other ones For gas are there?
As I understood, it’s a gift card that she purchases not a credit card. Hope this helps.
Love this idea. I need to get out of credit card debt first.
Please look through the articles her, J. There are so many great ideas to do just that!
This is a great idea I hadn’t considered. I just had my first DR lesson and was looking for DIY cash system that wouldn’t require the envelope. (I have RA so my fine motor skills are not suited to working envelopes.) Our school has a “Scrip” program where you can purchase gift cards for exactly face value, but the school gets a portion back from the company. Sometimes they even have a discount on the card so you get say a $50 gas card for $40. These are also often re-loadable. I haven’t done the program in a while, but it is a good savings and like she said, no cash at the pump.