HOW TO USE CASH ENVELOPES FOR BUDGETING

Cash envelopes are a great option to keep track of your spending. The envelope system allocates a certain amount of money for each category.

Why Should You Use Cash Envelopes?

A cash envelope budget system will vary from person to person. This system will allow you to customize your plan to fit your needs.

How To Set Up A Cash Envelope System

Common categories include food (including groceries), entertainment, clothes, and beauty. 

Decide what categories you will need to budget.

Begin by looking at your previous spending habits. How much did you spend on average each month in each category?

Determine how much you will need to spend in each category.

Label each envelope with the category name and the amount of money you have allocated for that category.

Create or purchase cash envelopes for each category.

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