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I keep going back and forth on this whole cash envelope thing after visiting my local farmers market last Saturday | Budgeting Wins - HW Forums

rowan666•2mo ago

I keep going back and forth on this whole cash envelope thing after visiting my local farmers market last Saturday

So I went to the farmers market downtown last weekend and noticed something that got me thinking about budgeting. There was this one vendor selling handmade soap and she had this jar full of cash and was counting it out between customers. Meanwhile the bakery booth next to her had a tablet with a card reader and people were just tapping their phones. It really made me wonder which method actually helps you save more. On one hand, using cash feels real and you can literally see it leaving your hand so you spend less. But on the other hand, cards and tracking apps give you receipts and you can look back at what you spent later. I've been doing a hybrid thing where I use cash for groceries and fun stuff but cards for bills and gas. Has anyone else tried both systems for a while and figured out which one actually keeps you on budget better?

2 comments

2 Comments

faithjones2mo ago

Oh man, cash is just way better for actually saving money. I tried the card-only thing for a few months and my spending crept up without me noticing until it was too late. When you physically hand over bills, it hurts in a way that tapping a screen just doesn't. Cards are great for tracking after the fact but they don't stop you from overspending in the moment. Cash envelope system is annoying to set up but it forces you to stick to your limits.

taylor9292mo ago

Totally agree with you on the cash envelope system. I did that for a few months when I was trying to pay off some credit card debt and it honestly works if you stick with it. The trick for me was to keep the envelopes in different spots so I wouldn't just grab from the wrong one when I ran out of grocery money.