Alternative Approach: Use Virtual Envelopes for most of your Spend Categories _ In today's electronic world, there's a version of the envelope system that can take the old proven approach and revamp it for the 21st century: Virtual Envelopes. Built on the solid foundation of the Cash Envelope system, Virtual Envelopes works seamlessly with your existing cash envelopes and your budgeting worksheets. The only difference from Cash Envelopes is that for some budget categories you will now deposit the cash into your bank or credit union and manage those categories online, or "virtually." Hence, the term Virtual Envelopes.
The biggest advantage of Virtual Envelopes is that your money is safe in a banking institution instead of cash in envelopes in your house. Just imagine if you hade robbery, fire, or just plain old forgot where you put that cash envelope with your rent payment. Not a fun time trying to recover that!