Isn't That Rich Podcast

If you grew up hearing about the “envelope method,” you already know the heart of it: give every dollar a job and spend only what is in that category. We love the discipline of that approach. We just do not love carrying paper envelopes. So we took the spirit of the system and moved it into online banking. Same clarity. Same guardrails. No stacks of cash on the kitchen counter.

Below is the exact playbook we use, inspired by our mentee, Pyper Colp, who built a simple, flexible version that works beautifully with modern money habits.

Why this works

Cashless envelopes give you instant visibility. Every category lives in its own checking account that you can name in online banking. You can see the balances at a glance, make automatic transfers on payday, and avoid the “where did it all go” feeling. It also helps you spend on what you value without guilt. Trips with friends, holiday shopping, car maintenance, and true emergencies all have a place and a plan.

The simple setup

1. Open your “envelopes.” Create several free checking accounts and give each one a clear name in the mobile app. Examples we like: Emergency Fund, Car, Fun, Christmas, Travel. Keep one account as your Main Spending account with your debit card attached.

2. Turn on automatic transfers. On payday, money moves from Main to your named accounts. In our app, tap Menu, then Transfers, choose From and To, enter the amount, pick the date, and set it to repeat weekly or biweekly. Transfers typically post in the morning, so your envelopes refill on schedule.

3. Spend from one card. Use a single debit card attached to your Main Spending account, or use your credit card and pay it immediately from the right envelope. Before you buy concert tickets, move the exact amount from Concert or Fun into Main, then purchase. This keeps things simple and helps some folks meet rewards requirements on accounts that pay cash back after a set number of swipes each month.

Picking your categories and amounts

Start with what matters in your current season of life. Saving for a first home. Paying down a car. Holidays without stress. Weekend plans with friends. Then pull last month’s statement, highlight where money actually went, and be honest about what you want to keep, cut, and grow. If you love the 50-30-20 idea, use it as a guide: needs, wants, and savings. There is no perfect formula. There is only what you will stick with.

Expect to tweak. Life changes. A new job, a move, or a baby will shift your priorities and your envelopes. That is a feature, not a bug.

What we love about the Main Spending account

Keeping your debit card tied to one account has benefits beyond simplicity. If a fraudster ever gets your card number, the only money exposed is what sits in that Main account. Since envelopes hold the rest, your risk is naturally limited. For online purchases, many of us prefer a credit card for the added protections, then we pay it off right away from the correct envelope.

A real-life example

Payday hits. Automatic transfers move a set amount to Emergency Fund, Car, Fun, and Christmas. You decide to book a show. You move money from Fun into Main and buy the tickets. That night, you open the app, confirm the purchase, and jot it in your tracker if you like paper. You never wonder what the trip cost or whether you should skip groceries to cover it. The decision was already made when you funded the envelope.

Avoid these common snags

• Too many envelopes. Temporary goals are fine, but close unused accounts so they do not clutter your view. Keep categories broad enough to be useful every week.

• Dormant accounts. If an account sits untouched for a year, it can go dormant and incur a small monthly fee. A tiny yearly transfer in or out keeps it active.

• Forgetting to “refill” Main. Build the habit. Move funds before you purchase, or pay the credit card right after you buy. Many of us do a two-minute check each night. It is quick and it pays off.

About that “invisible” spending

Nothing opens our eyes like a year-end total of small, daily swipes. Seeing it all in one place is powerful and can redirect hundreds or even thousands of dollars toward the things you truly want. The envelope view makes those tradeoffs visible. You are not saying “no” to yourself. You are saying “yes” to your bigger goals.

Your emergency fund belongs in the lineup

Aim for three to six months of living expenses in your Emergency Fund envelope. Start small and steady. Even a modest automatic transfer builds real peace of mind over time.

Getting started this week

• Pull last month’s statement and highlight it by category.

• Choose 4 to 6 envelopes that match your goals.

• Open the accounts, name them in the app, and set the automatic transfers from your Main account.

• Spend from one card and move money with intention.

Ready when you are

If you want help naming envelopes, choosing amounts, or setting up automatic transfers, stop by any branch or call us. Our customer service team can open the accounts, help you label everything in the app, and get your first set of transfers scheduled while you are here. Ten minutes now can save you a lot of second guessing later.

You can budget with confidence, still say yes to the fun stuff, and watch your goals get funded week by week. That is the magic of cashless envelopes.