There are probably 1,000,001 budgeting techniques that can be used during your debt-free journey. In our experience, what has worked the best for us is the cash envelope budget system.

We use the Goodbudget App to manage our monthly budget. It’s essentially the cash envelope budget system…minus the cash.

Here are 3 reasons why we love it:

1. The Envelope Budget System Actually Works

When we came across the envelope budget system, we realized that it was truly the best fit for our needs. Dedicating a set amount of money to specific things each month and then only spending that amount helps us stay on track.

The original cash envelope system requires you to pull out the cash, stash it in envelopes and then only use that cash. Psychologically, this method works because you’re less likely to spend more money than you have when you can visualize your budget diminishing.

There’s only one problem with that:

You have to actually carry that cash around.

I don’t know about you, but the idea of carrying my entire budget around in cash every day does not sit very well. Goodbudget (formerly EEBA) digitizes your envelope budget and allows you to manage your finances on the go.

2. It’s Simple to Setup & Use

Setting up the app is a breeze. You can manage your budget directly from the web or from your Iphone/Android device. If you’ve signed up for any of the various social media platforms out there, you’ll have no issues registering for a Goodbudget account. Yes, it’s that simple.

Once your account is set up, you can manage everything right from your dashboard. You’re able to input your various envelopes and transactions that show how much you’ve spent. The app tracks your progress and gives you a visual reminder of how you’re doing. You’ll actually get a little sad face when your balance starts to get too close to zero for an envelope.

At the beginning of each month, you’ll need to choose how you want to fill your envelopes. For us, we allocate $1,000 each month for our budget (excluding rent & bills). We have our budget set to refill twice per month on the 1st & 15th. Our app is set to fill our envelopes to the budget amount with NO rollover.

Our philosophy is that any money leftover at the end of a budget period will go towards paying off a debt or towards our savings account. However, that way of thinking may not work for your budget so there are other options for you to choose from as well.

3. It’s FREE!

Seriously, when you’re on a budget, free is the best price for everything. Goodbudget has two pricing options: FREE & $5 per month ($45 per year).

As you can see, there are a few differences between each option. You’ll have to decide what works the best for your needs. We opted for the free option because it gave us just the amount of functionality we were looking for (but mostly because it’s free).

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If you’re currently looking for a new way to budget, you should give Goodbudget a try. It has worked really well for us and we think it’ll work well for you too!

Do you use any apps for your budgeting? If so, please share them with us in the comment section! 

*Images courtesy of Goodbudget.com*