Lately I have been seeing people do the 100-envelope challenge (click Here for an affiliate link to 100 envelope challenge book) and it is a great way to achieve financial goals. Traditionally, you would label 100 envelopes from 1- 100, then add in the amount of money in cash. Though it is a great idea, I just personally don’t like to have that much cash around. So, if you are anything like me you may opt for a digital version of this concept for convenience and flexibility. If you would like to embrace the digital 100 envelope challenge here are a few effective strategies to think about:
1. Budgeting Apps and Tools:
There are plenty of different budgeting apps and tools designed to mimic the envelope system. The apps allow you to create virtual envelopes for different spending categories like groceries, entertainment, utilities, and savings. You can add funds to each envelope based on your personal budget and track your spending in real time. Some popular budget app options are YNAB (You Need A Budget), Mint, and EveryDollar have features like customizable categories, spending insights, and goal tracking to help you reach your financial goals.
2. Bank Accounts and Sub Accounts:
One of the ways I’m currently implementing the digital 100 envelope challenge is by using multiple bank accounts or sub-accounts to divine up your funds. There are many banks that offer the option of creating sub-accounts linked to your primary account. This allows you to designate each one for a specific purpose. When I first started my current job, I added two accounts to my payment methods. One account is my primary and the other account is for spending. I get a percentage of my paycheck deposited into the spending account, this way I know what I can spend, and I know what’s for bills and savings. You could also set up an automatic transfer from the main account to the other. This approach provides me with a structured way for me to money manage while taking advantage of digital banking features.
3. Spreadsheets and Digital Tracking:
If you prefer a more hands of way to implement a digital 100 envelope challenge, try creating a digital spreadsheet. You can use software like Microsoft Excel, Google Sheets, or budgeting templates to organize and track your spending. Create separate columns for each envelope, your budget amounts, and actual expenditures regularly. You also customize your spreadsheets to include additional features like formula-driven calculations, color-coding, and progress charts to monitor your financial goals. By maintaining a digital record of your finances, you’ll have greater visibility and control over your spending habits.
In conclusion, the digital 100 envelope challenge offers a modern and flexible approach to budgeting and saving money. Whether you prefer using budgeting apps, bank accounts, or spreadsheets, there are numerous ways to adapt this concept to suit your lifestyle and financial goals. By leveraging digital tools and strategies, you can gain better insights into your spending habits, make informed financial decisions, and work towards achieving financial stability and success. So why wait? Start your digital 100 envelope challenge today and take control of your finances like never before. Your future self will thank you for it. For more on a related topic check out these two posts on The Thought Process, Revolutionize Your Finances: Six Creative Ways to Save More Money & 5 Ways to Save Money During Inflation. For more of The Thought Process check out our last post, Six Powerful Crystals for Attracting Love.
