The 'Cash Envelope' Method to save money: Old School, but Still Brilliant

In today’s world of tap-to-pay and invisible transactions, it’s easy to overspend without realizing it. That’s why the cash envelope method—a budgeting system that’s been around for decades—still works wonders.

How it works:

  1. Choose categories where you tend to overspend (groceries, dining out, entertainment).

  2. Decide on a monthly budget for each.

  3. Withdraw cash and place the amount in separate envelopes labeled with the category.

  4. Spend only what’s in the envelope. Once it’s gone, you stop spending until the next month.

Why it’s powerful:

  • It makes money tangible—you literally see when funds are running low.

  • It curbs impulse spending. Handing over cash feels “heavier” than swiping a card.

  • It builds accountability and discipline.

Some people now use digital versions of this system with budgeting apps and prepaid cards, but many swear by physical cash because it hits harder psychologically.

If you’re serious about cutting back on spending, try it for just one month. You’ll be surprised at how effective this “old school” method still is in our digital age.

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