Envelope System and Online Bill Pay

[KatieNK]

Ok, so dumb question. If you do the envelope system, do you still use your online bill pay? I LOVE paying bills online fron my bank but I also have considered doing an envelope system. Not sure how that could work though!

ETA- oops I didn't mean to put this under the Debt section.

[creditcardfree]

I would think you could incorporate envelopes and bill pay. Pay your bills online, then pull cash out for your envelopes for purchases you might write a check or use a debit card for.

Many people use envelopes for gas, groceries, dining out, and clothing.

[zakity]

I have a spreadsheet that I use instead of actual envelopes. It lets me keep track of things without having to use actual cash because I do everything online or by credit card (which gets paid off every month).

[skydivingchic]

I use Mvelopes, which is a virtual envelope system, but accomodates different payment methods. It is exactly what I needed to get my budget on track. I don't like carrying cash, but had always wanted to divide my money into "buckets." Mvleopes lets me pay with my CC but still divide my money into virtual buckets. The money to pay the CC bill is taken out of whatever envelope I assign it to and put it into a "money for CC" envelope. When the CC bill comes due, the money to pay it in full is sitting there waiting. I use online bill pay for my CC and automatic account debits for mortgage, HOA fee, electricity, and cell phone. Mvelopes handles all that seamlessly.

Mvelopes

If you have heartache about paying for budgeting software, much of Mvelopes functionality could be duplicated with an Excel spreadsheet. But for me the program has been a budget saver and is well worth the cost. They offered me a lifetime membership last year and I jumped on it.

Several people on this forum also use You Need a Budget, which is also a virtual envelope budget software. You might look into that program as well.

[KatieNK]

Thanks everyone!!!

[christine quast]

$ saving college graduate

There is no reason why you cannot use both systems. Paying bills online is a great way to pay and it allows you to look at where your money is going. So pay your bills online then if you still want to use the envelope system then do that too. After you pay your bills and even before depending on when you get your money, go ahead and take out how much you need for each week. Then put whatever amount you need in each envelope, remember that you are already ahead of the game if you are learning how to be on a budget. If you can i would also recommend starting to save for the future, whether for a new car, college, or a house because the more money you save now the easier it will be to attain those things in the future and your money will grow. Good luck!

[jpg7n16]

I thought envelope systems are only for expenses that can be paid in cash. ie - Food, clothing, etc. So an e-bill wouldn't be a problem.

I kinda use a debit card for everything, so I don't use an envelope system. Maybe I should look into it...

[The Debt Classroom]

I agree with most of what's been said - an envelope system is basically just a method to impose, but it doesn't necessarily have to be in a literal sense. For some people, having a physical envelope system, with dollar bills to put into those envelopes is the easiest way for them to budget and keep track of their money. For other people, such as zakity and skydivingchic, finding a way of integrating the envelope system into the virtual world works. Just find a method that works for you, there aren't any rules set in stone about how to apply it to your life.