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.
Additionally, set up your savings, checking and the sub_savings accounts to have internet_access via your home computer, free of charge. This will allow you the convenience of budgeting and bill paying from the comfort of your home. If you are uncomfortable using internet_access for banking purposes, there are just a couple things to be aware of and you will be fine. First, only use a reputable bank or credit union. They have the best security in place for all of your data access requirements. Follow their password guidelines and change your password regularly. In my book, I dedicate an entire chapter to Virtual Envelopes and how to set up your sub_accounts.