How To Use the Cash Envelope System

The cash envelope is a budgeting system that only uses cash to pay for specific cost categories.  

Each cash envelope holds the money you allocate to that category for the month.  

Here's how to Use the Cash Envelop System to achieve your budgeting goals

First, determine the categories you tend to overspend on.  Then, designate a cash envelope for each one.

Decide Your Categories

Next, head to the bank to withdraw the money to place in your cash envelopes.

Pull Cash

The last thing you want to do is run out of money in your envelope for something important like groceries.

Spend Your Money Carefully

There may be times when you have money left over in your cash envelopes at the end of the month. Make sure you have a plan for this money

Leftover Money