I don’t know about you, but, saving money does not come naturally. I suck at it. BAD. Spending, on the other hand, seems to be easy as can be. But, something gotta give before I end in the poor house. So, working on my budget and money management skills using these Cash Budget Envelope System.
Cash Envelope Budget System is a great way to gain control of your spending and save your hard-earned money!
What Is A Cash Budget Envelope System
The envelope system is simple. You take all of the monthly items you plan to spend on or save money for, and you write that category name on the front of an envelope. Once a month, or however it makes the most sense for you, take cash out of your bank account and put the allocated amounts in each envelope.
We all have to eat, right? Our household food budget is $400 – so, every month for example – we have one envelope with “FOOD” written on the front. We set aside $400 per month to buy groceries with. At the beginning of the month (or twice a month, etc) you take $400 from your paycheck and place it in the “FOOD” envelope.
For the rest of that month, whenever you buy food, the money to pay for it comes out of that envelope, and ONLY that envelope.
Additionally, you will buy food and ONLY food with money out of the envelope marked “FOOD.” Remember, no cheating. The system only works if you are self-disciplined enough to follow it.
It’s a great way to get a grip on your spending. Seeing cash part from us hurts, much more than the swiping we do with plastic.
That is literally all there is to the envelope system. At the end of the month, you replenish your envelopes. If you have any cash left over from the previous month, you can apply it toward debts, put it in savings, or give it away. If you are short at the end of the month, you will need to either adjust your amount for next month or buy cheaper groceries.
You can also choose to leave any money left over in the envelope in order to save up for more expensive things. A good example is with clothing money. If you decide you want to put $100 per month in your clothing budget, you could save that up in the envelope for six months or so and buy a nice suit, or something else on the more expensive side.
Why Use The Cash Budget Envelope System
The Dave Ramsey envelope system is an old, tried and true form of cash management. It is simple, it makes sense, and it WORKS! However, in the “right now,” technological society of today, any financial system that revolves around cash is viewed as old-fashioned and obsolete. The vast majority of Americans rely on credit cards for daily purchases, big and small. That is another issue for another article, but I believe it is a major factor in many people failing to stick to their monthly budget.
For many people, using credit cards is a matter of convenience. You select your purchases, you check out, swipe the card, and you are done. What most do not realize is that the vast majority of credit (or debit) card users are likely to spend significantly more when charging a purchase rather than using cash.
This is where the envelope system really shows its strengths, and why it makes it easy to stick to your budget.
Seeing is believing they say! So, with that being said, seeing your money leave your wallet might help you curb your excessive spending.
Where Can I Buy A Cash Budget Envelope System
Below, I have 7 Beautiful Cash Wallet That’ll Make You Want To Save, all from Esty.com.
1. Zippered Monthly Giraffes, Dots, and Stars Cash Envelopes
A simple set of save, spend, give cash envelopes. These three cash envelopes are the perfect way to start on your debt free journey.
2. Designer Quality Cash Envelope
Carry your cash/coupons in style with this budget envelope system wallet clutch!
Colorful Laminated Cash Envelope
4. Fox It Out Fabric Cash Envelope Wallet
This money system wallet makes it so easy to save money. By putting your weekly or monthly allotted money into each envelope you’ll know exactly how much you’ve spent and have left.
5. Groovy Baby
These budgeting wallets are completely quilted with 6 secured envelopes for budgeting your finances easily, 6 card slots and 2 pockets for checkbook and other needs.
Aqua Morracan & coordinating fabrics. Listing is for 1 Jumbo size Cash Budget System with 8 to 15 Envelopes.
7. Birds & Purple Stripes Cash Envelopes
The envelope system is a very simple and effective way to manage your monthly expenses and keep yourself tied to your monthly budget. You can utilize this system for any category that you like, and if you stick to it, you will see yourself ending up right on budget month after month.