![]() ![]() However, if the alternative would have been that you would have spent that money then it is better to save without earning interest. If you have $5,050 to save then you will be better off putting it in a high-yield savings account and earning interest on it. Envelope saving doesn’t yield any interest.This will force them to save more than they would have. If you do use cash often enough, then an envelope savings challenge will help you save your spare change instead of wasting it. It is perfect for those who earn cash and tend to spend more than they need. So, I would say that the envelope challenge is more for people who get their salary paid in cash. If you draw out money from the bank to participate in the challenge, then you might as well transfer it to a savings account and earn interest. I pretty much use my credit card for everything. Who has that much extra cash lying around? I hardly use cash for anything.This is based on the assumption that you earn enough to save and pay your essential expenses. If you save the money on payday before you start paying for your expenses then you will ensure that you reach your saving goal.The money envelopes are sealed with a specific sum in each one which makes it more difficult to “borrow” from them. ![]() When you save money in a piggy bank or a box that can be opened then it is easy to take out money when you need it.
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