46 thoughts on “Digital Cash Envelope System – The Best Alternative

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  2. Thanks for sharing. I love this Virtual wallet and will be checking with my bank to see if they have something similiar.

  3. LOL! The no sock or underwear drawer part. "Than you're a monster…" This is pretty neat, thanks for the information and little bits of humor.

  4. I kept asking myself if there was a sort of system like this. I am from Canada so I will be checking into it here. Thanks so much for the info! (I spent waaayyy too much time looking for scrapbook paper to make my envelopes, btw :P)

  5. I tried the cash envelope system, now days cash it's a lot harder to do since there's no way to keep track of it. I use my bank statements to track all of it. Great tips! Thanks for sharing 🙂

  6. I use the cash envelopes for spending, particularly it controls my random spends in small amounts. . But for savings I use a better system in my bank Icici in India which is like your bank called I wish goals. There are options to pay whenever or periodically.

  7. From the research I am currently doing the only places that do something similar are Simple Bank and Captial One 360. Simple has a enveloping budgeting tool built in it. Capital One 360 allows you to create up to 25 savings accounts aka envelopes. The one I am really looking at is Proactive Budget. Its a debit card/checking account that works with an app. You go to your app and select a budget like "vacation trip" and it moves the money to the debit card. The debit card has no money on it without you interacting with your budget via the app. Trying to find out what the best system is.

  8. Thank you. That's is fantastic. I was just thinking that I love the separation of the envelope system but the security of having money in the bank. Thank you !!!!

  9. New Subscriber here.

    I'm a fan of the envelope system, however I am always open to suggestions. I believe Capital One Bank also offers something similar to this, but am not totally sure as I don't use them.

    I know this is an older video but are you still using this bank today?

  10. I do the same thing but I use paper and ink. 🙂 I've been budgeting like this for over 35 years and it has served us well! For people who like technology, this is a great idea!

  11. We use PNC's virtual wallet for our sinking funds as well, but prefer cash for things like groceries and clothes. I like farmers markets a garage sales, so it's good to have cash for those! Last year we used PNC's virtual wallet to save for a minivan and help cash flow most expenses for the birth of our 3rd child. Highly recommend them and have heard of other banks now starting to do this as well!

  12. So you use of virtual envelope system. Same concept but you don't have to deal with cash. You can always buy a safe and have that screwed down in your office in your house and keep your envelopes in a safe. The reason using the cash works is because it's a tangible thing that you're touching and you can feel the money leaving your hands if it's all a number on a screen it's not changing your heart. The whole point is to make you feel the loss of when that money leaves your hand.

  13. I like the cash envelope system because I get paid on tips so I just put my money in that but I don't keep all of my money in them…and after a while I just take it to the bank to put in savings…

  14. Smartypig bank is kind of like this but it's an online only bank that only allows certain amount of withdrawal as well…

  15. I really like this method . But I actually want to stick to cash envelopes for now. It’s just something about handing cash over that hurts lol and with my debit card it doesn’t hurt as much . Later on I’ll give this a try because just stuffing envelopes sometimes makes me go crazy

  16. Ok so I HAD virtual wallet and they did NOT explain it this well!! I had such a hard time understanding WHY I would have the reserve account. The only thing I don’t like is you can’t use BILL PAY on reserve account, so if I had a car insurance fund/account, then you HAVE to move to the spend account. Great video!!!

  17. Check again into your "Growth" account. If I'm not mistaken, it earns the most amount of money but I'm not sure how much. Might be a better place for that Emergency Fund that doesn't get touched.

  18. It's funny, I don't have a virtual wallet at my bank, but I do have 3 separate sub-accounts for reserving things. I'm really glad that I'm not the only one who does this. I thought I was being stupid not using envelopes.

  19. Hi Jarrad,

    Thanks for your video! I have a few questions and if you get a chance, I'd really appreciate any info. you can share regarding them:

    1. Is there any way to set-up automatic deposits into the different reserve accounts on paydays or do you have to manually do it on each payday?

    2. Have they updated the reserve account screen? It appears different on my account and we just opened our virtual wallet with PNC a few days ago…I see your post is from Nov. 2017…does your reserve screen still look the same when you use your virtual wallet?

    I look forward to hearing from you!

    Thanks so much!

  20. I use google sheets, make a bunch of "envelopes" as in rows of stuff i budget. It helped me a lot because it made me evaluate what is important which helped me find an extra $300 a month.

  21. Thank you I have PNC and have been wondering what to do if you try to a sort of cash budget. Because I’m sorry everything I buy is online so I cannot do the cash thing and this is a perfect alternative 💕

  22. When I learned about the cash envelop systems it was simply to have the money you need to spend, savings were staying in that bank account. Or bank accounts . I stick with that( because not all banks offer this service) : one Emergency Fund account , one current and one project oriented account. The founds are automatically transferred to the savings and I am left with what I can spend.

  23. That's a very clever system PNC came up with! I must admit though; using the envelope systems makes you more aware how much mulah you've budgeted for the month, and once you've handed that last buck over, it's over! It also keeps you from buying junk food! The rest to the bank and keep track on the computer.

  24. What if the bank doesn't offer this type of service? Any other suggestions? Should I open up about 6 different savings accounts?

  25. I actually was thinking the same thing. I don't carry cash on me so why would I want to have it sitting around my house. Walk into the 21st century and add more savings accounts and filter money with the click of a button! I get direct deposit anyway to avoid going to the bank. "The envelope system" forces me to go to the bank, withdraw my paycheck, diving it up into piles, store the bundles…blah😛too much bother!

  26. Man i was like "please don't say ynab, please don't say ynab, please don't say ynab" lol. This sounds so much better than ynab. It's such a hassle for me

  27. I already have a PNC virtual wallet account. And thank you for reintroducing me to this feature!! I will be trying the digital way.

  28. Interesting, is PNC the only bank that has this function? Also are you earning interest on the various "buckets" or "envelopes" your money is in? If so and in total you earn more that $10, how is it reported to the tax man?

    Also that "growth fund" sounds like it could be a type of money market account.

  29. Jarrad, what's your take on the digital cash envelope system, "Proactive"? They have a YouTube video up. Interested to know your thoughts. It's in beta at present time with only 100 user so far. Those things give me pause. What say you? Thanks.

  30. Personally I use both systems for my budget – each to their own. But I use about 80% of the budget payments via electronic banking because of my work hours and it is easier to pay bills.

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