Why does nobody talk about the envelope system being a double-edged sword?

I started the envelope system 6 months ago for groceries and eating out. Before, I was spending like $450 a month on food total. After switching to cash envelopes, I got it down to $320. But here's the thing - I feel like I'm missing out on credit card rewards and cash back. My buddy Jason in Denver swears by his points system and says he gets $50 back monthly. Meanwhile, I'm stuck counting out twenties. Is the discipline worth losing those perks? Has anyone else wrestled with this trade off?

3 comments

3 Comments

knight.dylan6d ago

The real trick is doing both envelopes for daily stuff and cards for big bills.

jenny475d ago

I've been doing envelope system for two years now and honestly @knight.dylan has it right - I do cash envelopes for groceries and fun stuff but run big recurring bills like insurance through my card for the points, best of both worlds without the overspend.

milam486d ago

honestly i think people overhype the rewards thing. the average person spends way more with cards than they would with cash so that $50 back probably gets eaten by extra spending. i'd rather have the control than chase points.