What money management strategy should someone who deals in cash use to physically manage their cash?

The Envelope Method is a practical cash management strategy particularly suited for individuals who prefer to handle physical cash. This method involves dividing cash into separate envelopes designated for different spending categories, such as groceries, transportation, entertainment, and savings. By allocating a specific amount of cash to each envelope, individuals can visually track their spending and avoid overspending in any one category.

The tactile experience of handling money in envelopes helps reinforce the concept of budgeting and financial discipline. Once an envelope is empty, the individual knows they have reached their spending limit for that category until the next budgeting cycle, effectively controlling their expenses and encouraging mindful spending.

This method is advantageous for people who might find it challenging to keep track of digital transactions or who prefer the physicality of cash as a budgeting tool. It adds an element of accountability, as seeing the cash physically can create a stronger awareness of how funds are being spent.