Why We are Going back to Cash & Not Digital
For now... that is.
With our current situation and location, we decided to go back to cash envelopes instead of digital envelopes. I started looking into digital envelope system like You Need A Budget or Every Dollar. They both look very good but both would need good cell reception for updates and transaction management. In our area, the reception is okay... it's not great. However, my current phone is old and both our phones don't retain battery power too long. I know, we need to replace the phones but it's just not priority right now.
Also, we have been out of control with our fast food take out habit...with cash envelopes, it's like an extra check on our behavior, we feel like. It's harder to go over the limit on a category if the real life money just isn't there.
However, some places in our area no longer accepts physical bills due to covid-19 safety measures. We do set aside the withdrawn physical bills for a couple of days before placing them into respective envelopes since germs can't live too long on paper surfaces. Still, for now, for places that do not accept cash, we would pay with our credit/debit card and then, deposit the equivalent cash amount into the bank. The transactions would be recorded in the appropriate cash envelope as usual.
This is extra work for sure....all the extra deposits (or once a week, in our case).. but we feel that for now, we will continue it this way to help curb our spending nature. Remember, we have been very frivolous with our money until very recently. We still spend too much on eating out and entertainment...going over our budgets each week. However, compared to our previous state, it's been pared down dramatically.
On a side note on our May 2020 Budget plan, we decided to increase the weekly budget for Dining Out category to $25/week and added an additional category for Koa's personal spending, which is set for now at $20/week. We have been stealing from our Fuel category for any over spending also....but since we have not been driving too much, there has been $140 ish left over in the Fuel category from previous weeks. It's now down to $98 but today, the weekly budgeted amount of $50 is being added so, there should be plenty of money for gas again. Still, this is something we need to work on.