How To Use Cash Envelopes For Budgeting

This system will allocate a certain amount of money for each spending category. It helps you stay on track with your budget and avoid overspending.

What Are Cash Envelopes?

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

Decide what categories you will need to budget.

The amount in each category will vary based on your income and variable expenses. Begin by looking at your previous spending habits.

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.

When time comes to spend money in a specific category, take the cash out of the envelope and use it to pay for the purchase.

How To Use Your Cash Envelopes To Stay On Track