How to Use the Cash Envelope System Without Cash

The cash envelope system makes your budget come to life visually and tactile. It helps you see your budget at work and how much money you have to spend with the help of envelopes and cold, hard cash.

Good Debt vs Bad Debt

First, most of us aren’t used to using actual dollar bills and coins. Secondly, many stores prefer cards over cash. And third, most of us get paid by direct deposit, and going to the bank every payday to get some money for your budget isn’t very convenient.

Good Debt vs Bad Debt

The answer is no. If you spend some time choosing a method and getting it set up, a cashless envelope system for budgeting can work just as well as a standard envelope system.

Is a cashless system still effective? (using debit cards, not credit cards)

First, you need to understand how to set up a cash envelope system (this is the same for physical envelopes or a cashless envelope system)

How to set up a cash envelope system

You really need to be in the right mindset to take on this challenge. You need to understand that the majority of the things you buy, you don’t need. You will also need to find ways to cut back on paid daily living activities to fit your expenses in the new budget. I have a whole bunch of tips to help.


Before you start saving half your income, you need to know where your money is going. By taking a look at your online banking or receipts, you will easily be aware of how you spend. This will make it easier to know where the spending holes are.

Track Your Spending

I do this a couple times per year. I will call auto insurance, sell phone providers, and Sirius XM at least once per year to get a better deal.

Negotiate Bills


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