Envelope Budget App - Simple Envelope Budgeting (2024)

FAQs

Which budget app uses the envelope system? ›

Use Goodbudget.

Save for big expenses, share household expenses, and budget on the go. Goodbudget makes it easy to live out a budget based on the envelope budgeting system.

In this technique, the idea is to break down your monthly living expenses, savings, and debt repayments into categories and set aside the appropriate amount for each bucket — one envelope for the rent, another for the car payment, one for each credit card payment, one for savings goals, etc.

Cons. It may be time-consuming. If you decide to use cash and envelopes instead of digital tools, you'll need to cash your paychecks and divide up the money every pay period.

The concept is simple: Take a few envelopes, write a specific expense category on each one — like groceries, rent or student loans — and then put the money you plan to spend on those things into the envelopes. Traditionally, people have used the envelope system on a monthly basis, using actual cash and envelopes.

Determine your spending method.

GoodBudget, Mint and Simplifi are examples of apps that support the envelope system. Some people prefer to pay everything with a credit card in order to earn the rewards and build credit.

It really was made famous (and a lot more popular) by finance guru and radio talk show host Dave Ramsey. All you need to get started are some ordinary envelopes, either store bought or homemade. Oh, you also need to mix in some financial discipline. You'll definitely need that.

You can save over $5,000 in just over three months with the 100 envelope challenge. It works like this: Gather 100 envelopes and number them from 1 to 100. Each day, fill up one envelope with the amount of cash corresponding to the number on the envelope. You can fill up the envelopes in order or pick them at random.

Just for reference, Quicken Windows has support for budget rollover, but not envelop budgeting. Note that it doesn't see very clear in the original post, but the rollover is per category (optional).

Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.

Requires physical money – Because this system is all cash, you'll be less reliant (if at all) on credit cards. This could be inconvenient and may even cause you to lose out on some of the benefits of using credit cards, like a more active credit history and rewards points.

Is envelope budgeting only physical? ›

Envelope budgeting is one way to manage variable expenses into categories using either physical or digital envelopes. Once the money from a category is gone, you can't spend again until you've added more money back.

Bottom line. Cash stuffing might appeal to consumers who prefer simplicity or have problems with impulse control. But the risk of having all that cash around — not to mention missing out on interest and card rewards — should make you think twice before labeling all those envelopes.

RealBudget is designed to bring you the simplest form of money management in the most straightforward way possible. Create monthly budget envelopes, enter transactions, and track how you spend your money each month.