The Envelope System, Updated for the Digital Age

Your grandparents may have stuffed cash into envelopes labeled “Groceries” and “Gas.” The idea still works — even if you never touch paper money.

How it worksYou assign each spending category its own “digital envelope.” Apps like Goodbudget or YNAB mimic the process. When an envelope runs out, you stop spending from it.

Why it worksYou see your limits. Watching a balance drop to $0 triggers restraint faster than abstract numbers on a spreadsheet.

Set-up tips

1. Pick 4–6 core categories: groceries, gas, fun, eating out, misc.

2. Transfer a set amount weekly.

3. Track visually — colored bars or emojis keep it light.

Bonus:Still love real envelopes? Use them for cash categories that blow up fast (restaurants, coffee). The tactile feel makes overspending harder.

Modern tech, old-school discipline — the envelope system proves some vintage ideas age perfectly.