ok so is envelope budgeting actually worth the hassle or not

I used envelope budgeting for 6 months straight last year and my savings went up 300 bucks each month no joke, but then I missed a bill because I forgot to update an envelope and got hit with a late fee. Now I'm wondering if the system is more trouble than it's worth or if I just messed up the tracking part. Anyone else find a way to make it stick without the constant envelope juggling?

2 comments

2 Comments

lily_schmidt5317d ago

300 bucks a month extra in savings? That's insane. I mean honestly I can't even wrap my head around that kind of number because I'm lucky if I scrape together 50 bucks after all my bills and random stuff. But then you got hit with a late fee and I'm sitting here thinking that totally defeats the purpose if the system punishes you for being human. What I found that helped when I tried envelope budgeting was using separate bank accounts instead of physical envelopes so I could transfer money digitally without the risk of forgetting to update a paper envelope. I set up automatic transfers from checking to savings for stuff like bills and groceries and it felt way less stressful than keeping cash in labeled envelopes. Your savings boost is seriously impressive though maybe you just need a backup system like setting phone reminders for bill days so you don't miss another one.

ninah1017d ago

Oh man, the late fee thing is brutal. I started transferring my bill money into a separate account the day I get paid and set up autopay from there, takes the human element out of it completely.