This is Optimal Finance Daily, episode 1055.

How to Use the Cash Enveloped Method Without Cash

By Kamiko of the Budget Mom.

And I'm Dan, I'm your host, and welcome to Optimal Finance Daily, where I read to you every single day of the week from some of the best personal finance blogs on the planet.

For now, let's get right to the post and start optimizing your life.

How to use the Cash Enveloped method without cash by Camico of the Budget Mom.com.

As most of you know, the cash envelope method is my favorite budgeting method. Not only has it helped me pay off more than $30,000 of credit card debt,

but it also helps me control my spending so I can save more of my money.

Stuffing my cash envelopes has become one of my favorite days of the month.

There's something magical about watching the numbers you have written down on your budget turn into physical cash in your hand.

With the cash envelope method people always assume you need cash for it to work.

It's true that your money becomes more tangible if you use physical cash, but the method can still work and have the same psychological effect without it.

It does take a little more self-control to use the envelope system budget without cash, but once you have your system perfected, it gets easier to manage.

How the cash envelope system works.

The basic steps on using the cash envelope method are pretty much the same with or without cash.

You create a budget by writing down your expected income and expenses.

After paying your regular bills, you use any leftover money for variable spending.

You figure out which categories to use for your envelopes

and pull out cash to stuff your envelopes every payday.

Once you run out of cash in an envelope,

you have met your budget for that pay period. Once the cash is gone, it's gone.

Reasons for not using cash. So what do you do when you don't have access to cash?

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