Budget Tips, Money

The Ultimate Guide To The Cash Envelope System

  Cash Envelopes are the best way to curve your spending because it has been proven that cash is mentally harder to spend than swiping your card!  This system is nothing new to the budgeting world. In fact, this is probably how your great-great grandma carried her budget! If it worked for her, it could definitely work for you! Cash Envelopes are exactly what they sound like. Envelopes or Clips to hold cash that is specifically allocated for a certain category. Things like eating out, groceries, and misc/personal spending are usually the most popular categories for your envelopes, but they can be so many more than that. Cash envelopes allow you to assign a certain amount of money to a category. Once the money in that envelope is gone, there is nothing left for you to spend! They take a few months to get the hang of, but soon you will be rocking and rolling your way to spending less! How to Set up Cash Envelopes? Gather all of your materials To get started you will need envelopes, a pen, a small notebook (small enough for a piece of paper to fit inside of the envelope), clips, and a place to put them! I also use sticky notes to label each clip. I use an old recipe box to keep all of my envelopes organized. The old, decorated milk jug is my coin jar where I put all of my loose change. It actually adds up pretty quick and it is a nice extra $50 every other month. I have seen people use all different kinds of envelopes as well. There are plastic envelopes (which will hold up a little bit longer), or paper envelopes with a ledger if it makes it easier for you to track. Or you can decorate your own. I started with basic office envelopes, but I have been thinking about upgrading! Make a list of budget categories that cash spending would help with These can be all different kinds of things based on your budget and your family. Because I am a waitress, I have…

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