You don’t need a stack of envelopes or piles of cash to make envelope budgeting work. Modern banks like Ally, Capital One 360, and Chime let you create multiple savings buckets or sub-accounts — for free.

Think of each one as a digital envelope: Groceries, Rent, Gas, Fun. When your paycheck hits, you divvy it up between buckets just like you would with paper cash.

The best part? It’s visual, simple, and doesn’t require spreadsheet skills. You log in, check your “Gas” balance before filling up, and you’re done. It’s budgeting without the brain drain.

If you still like something tactile, some people combine this with a physical envelope wallet system for cash categories like food or personal spending.

For a full walkthrough on combining cash and digital methods the right way, check out:
Cash Envelope Budgeting: How to Make It Work Without Living in 2003