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.
Common categories include food (including groceries), entertainment, clothes, and beauty.
The amount in each category will vary based on your income and variable expenses. Begin by looking at your previous spending habits.
Label each envelope with the category name and the amount of money you have allocated for that 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.