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Are you looking for a cash envelope system wallet that is not only beautiful but also functional and affordable?
Then, you are in the right place.
After going through many cash envelope wallets in the market, I have shortlisted the top five cash envelope system wallets to help you save time in your search for the perfect one.
On top of that, I will also share with you how you can best use the cash envelope system to help you stick to your budget and avoid overspending.
What Is Cash Envelope System (& How It Works)
Cash envelope system is introduced by Dave Ramsay, a personal finance expert, to help you budget your expenses using cash.
Does it really work?
Yes, it really works because, unlike credit cards where there is no limit (except your credit limit), you can put a limit on your purchases.
Also, when you use cash to make purchases, you become more mindful of what you buy and how much you spend.
So, how do it work?
And how do you start your cash envelope system?
Step 1: You determine your total budget available for all your discretionary spending.
How you do that is to work out your monthly income and then subtract from that your fixed essential expenses such as rent and your monthly loan repayment and your savings.
Whatever is left is the maximum budget for all your discretionary spending.
Step 2: You divide the cash among your budget categories.
Here are the common expense categories for the cash envelope system:
- Household items (e.g. toilet paper, cleaning products, etc)
- Transport ( e.g. cab, uber, bus, subway, etc)
- Kids allowance
- Fun money
So, you will use one envelope for each expense category and label it correctly on the outside of the envelope.
But, how do you decide how much cash to put in each envelope?
To set a more realistic budget for your cash envelope system, what I recommend is that, before you start your cash envelope system, you should do a 30-day spending log to see how much you actually spend.
For example, if you find out that you normally spend $500 a month on groceries, then you can start by setting a budget that is slightly less than that.
Let’s say you want to cut your grocery spending, then you can put $450 cash in your grocery envelope.
Or if you spend about $200 on restaurants every month and want to reduce your spending on dining out, then you can set a cash budget of, let’s say, $100.
So, you can put $100 in your dining out envelope.
Step 3: You only spend the cash for your discretionary purchases.
Once you’ve run out of the cash, you have used up your budget for the expense category.
For example, let’s say, on 15th of the month, you have spent all the $100 cash in your restaurant cash envelope.
That means you cannot spend any more on restaurants for the rest of the month.
Step 4: If you have leftover money in your cash envelope, then that means you have done a good job keeping your spending within your budget.
With the leftover cash, my recommendation is to put it in a high-yield saving account with a reputable bank such as CIT Bank which gives one of the highest interest rates.
Pros & Cons of Using Cash Envelope Systems
There are a lot of obvious benefits of using cash envelope systems:
- It’s easier to avoid overspending because your budget is more tangible and you are more likely to think carefully about each of your purchases.
- It helps you cultivate good spending habits and instill discipline in you.
- No bad credit card debt because you don’t spend more than you earn
- No overdraft fees because you won’t use debit card to overspend
Just like everything, there are also drawbacks to using this:
- You miss out on earning rewards or cashback by using credit cards on your purchases
- It might make you feel unsafe to carry so much cash around in your wallet
- It might be inconvenient because you have to bring your cash envelope with you everywhere you go
- Cash might not be accepted everywhere, especially when going cashless is gaining moment
- You have to manually track all your expenses when there are pretty good budgeting software to help you do everything automatically
Why Do You Need A Cash Envelope System Wallet
If you want to use the cash envelope system for budgeting, then a cash envelope system wallet will make it so much easier for you to store and organize your cash.
Also, with a wallet, you can put everything such as your cash, IC, cards, coins and receipts in one place.
It’s also easier to carry it around with you.
So, how do you choose a cash envelope wallet that is the most suitable for you?
Here are the factors I will look at when I decide which wallet to buy:
- Reviews ( I would like to see a 4.5 out of 5 stars reviews on the things that I buy)
- Durability (I don’t want to have to replace the wallet every few months)
- Quality of cash envelopes (Is it easy to tear? )
- Security (As I am carrying cash inside my wallet, I want to know that my cash won’t fall out)
- Functionality (e.g. can it hold other items such as my ID and coins?)
5 Best Cash Envelope System Wallets
#1. Soligt All-in-One Cash Envelopes Wallet
I love this wallet because it keeps your cash envelope budgeting system all in one place.
Plus, it’s stylish yet affordable.
It’s made of durable red PU leather and closes securely with a zipper.
The wallet has two compartments for credit cards and a coin purse.
This wallet also comes with 12 envelopes, 12 budget sheets, and spending trackers.
Inside the wallet, you can fit up to 10 envelopes or more.
There is a removable ring binder inside the wallet that helps hold all the envelopes in place.
The envelopes are pretty durable because they are laminated.
On each envelope, there is a blank box where you can write down the expense category.
All the envelopes also open along the long edge, so you don’t have to worry about fumbling around in a store checkout line to find the $20 bill you need from the grocery envelope.
Best of all, it comes with an unconditional 100% money-back guarantee.
That means they will refund your money if you are not happy with the cash envelope wallet.
#2: The Great Divide – A Cash System Wallet with 5 Magnetic Cash Envelopes
This cash envelope wallet is classy and beautiful.
It has plenty of space for everything you need:
- 5 removable cash envelopes
- 12 credit or debit cards
- two side pockets
- zipper pocket for change
Compared to the paper cash envelope you see with other wallets, their envelopes are made of fabric and can withstand the washing machine.
Each envelope also has a small magnetized closure, keeping your hard earned cash securely inside.
This little magnet also helps keep your stack of envelopes neat and tidy, all in one place.
So, how do you label your fabric envelopes?
The wallet comes with 12 write-on adhesive labels to help you write your budgeting categories.
When you go out, you can just take the cash envelope you need and leave the others at home.
If you need extra cash envelopes, you can easily purchase it separately.
#3. Divvy Up The Savvy Spender – Large Foldover Budgeting Clutch Wallet for Cash Budgeters
The Savvy Spender is a large-size cash envelope system wallet and can even be used as a ladies clutch.
It’s similar to the wallet mentioned above with five magnetic fabric envelopes.
The main difference is that this wallet is a foldover clutch wallet while the other one is a zip wallet.
Inside this foldover clutch wallet, there is a zipper pouch with a divider to allow you to keep either loose coins, bills, or receipts.
Depending on your brand of phone, it may fit inside as well.
#4. Savvycents Cash System Wallet (Bone Eyelet)
If you are someone who is looking to become more frugal and save more money, then this wallet is for you.
It is a soft, leathery wallet and fits well in a large purse.
This wallet is of excellent quality.
It’s a wristlet as well!
It’s easy to pull the wristlet out.
The loose change section on the side of the wallet opens nicely to accommodate lots of coins.
It also has extra pocket for cards, coupons, gift cards, receipts, etc.
Within the wallet, there is an accordion stye file system.
So, you don’t need need paper envelopes to do cash budgeting.
The wallet comes with pre-printed and blank labels to customize the wallet.
A zip around enclosure keeps everything safe inside.
Lastly, it comes with 9 different designs, so you have plenty of choices to choose from.
#5. Cute Floral and Red Checkered Oilcloth Cash Envelope System Wallet
If you don’t like paper envelopes, then you should really check out this cute fabric wallet.
This cash envelope system wallet is perfect for cash budgeting systems and extreme coupon-ing.
It is made of high-quality Oilcloth fabric that is waterproof and easy to care for.
It is very durable.
The stitching is also very strong.
So, it will likely last for a long time.
The Velcro also is strong enough to hold the wallet closed even when it’s full.
When you open the wallet, you will see 6 zippered pockets down the middle.
There is also room for a checkbook, ID, and cards in the side pockets.