When you use an envelope system do your write checks?

[Flowers]

if you use the cash-in-the-envelope system, how do you pay the bill?

I pay bills with checks or mostly now through the pay-bill system on line.
But with the cash-in-the-envelope system do you bring the cash to the bank and then pay the bill???
Are you nervous about having that much cash around the house?

[Over our heads]

My way is kind of convoluted, but it does work for us.

We have 2 checking accts. at our main bank. Hubs check is direct deposited into one acct. I transfer the money used for bill pay to the other, and pay bills directly from there, if the bill I am paying doesn't accept electronic payments, the bank sends a paper check. Any paper checks that for some reason I need to write, also come from that acct. I take out in cash the $ for groceries, rx, and gas.


The gas $ and his work money got into a separate acct. at a different bank. The only reason I use this acct. is for gas. It is mostly used to keep track of his business expenses, and our gaming fees. (yeah...we are slightly nerdy.)

I keep the grocery and rx money on me, and when it is gone, we better not get hungry or sick!

I have found that using a different acct. to pay the bills helps me keep better tabs on how much money we actually have (usually a big fat 0! ). Like I said it is convoluted, but it works well for me/us!

[willowhare]

While I actively used the envelope system, I either took the cash to the bank and put it in my checking account, or I took it to a post office or check cashing place and had it put into a money order, which I then sent to the landlord, electric company, etc. It's a pain, but it does help with budgeting and keeping the cash off the bank records.

Now that my 341 is over, I set up a section of my savings account that it just for holding money I need to set aside to pay bills. When I get paid it is directly deposited into my checking account. Then, the amount I need to set aside is moved right into the savings account. When I have a bill to pay, I move the amount over to the checking account.

Yes, I was nervous about having that much cash around. I purchased a small fireproof lock box and used that to hold the money. I also put all the money in sealed plastic bags to protect it from water damage. Also, you could have the money converted into money orders or traveler's checks as you get it.