Budget using the envelope system

Want to keep more of your hard-earned cash? Try keeping your money in cash envelopes. 

The cash envelope system is nothing new—it’s been around for decades. But some people still don’t know exactly how or why it works. Let me show you! 

What is the Envelope System?

The envelope system is a way to track exactly how much money you have in each budget category for the month by keeping your cash tucked away in envelopes. At the end of the month, you can see how much cash is left by taking a quick peek in your envelope. How easy is that?

If you’re constantly going overboard in a certain category (hello, food!), then take cash out for the amount you’ve budgeted for and stick it in an envelope. When you shop for that category, only use what’s in the envelope. Once the money is gone, it’s gone—so this will force you to stop overspending!

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