Did you ever wonder how some people say that they are on a budget and pondered how they even stick to it?Â
Cash envelopes!Â
The envelope system, also known as the envelope budgeting method, is a popular method for visualizing and maintaining a flexible budget. The key idea is to prioritize cash income to meet separate categories of household expenses in physically separate envelopes.
Typically, the person will write the name and average cost per month of a bill on the front of an envelope. Then, either once a month or when the person gets paid, they will put the amount for that bill in cash in the envelope. When the bill is due, the money is taken out to pay for that bill. This prevents the person from spending the money out of their pocket or bank account, because it is already allocated to the bill. This is a budgeting mechanism often suggested to people by Dave Ramsey.Â
You don't need to have a plain one...Â
DIY Cash Envelopes
If you're bored with the plain white envelope better try using some patterned paper and make the envelope by yourself. It's cost effective and quite creative.Â
Baja Blue Cash Wallet
The Baja Blue Cash System Wallet offers refreshing colorful blooms in bright mint, capri blue and electric yellow green on a navy background. Lined in a unique 100% cotton gray print with coordinating antique pewter hardware and micro-diamond quilting.Â
Zippered Envelope
Organize your finances with this fun and functional llama money wallet.Â
Fillable + Printable DIY Cash Envelope
Why not make your own cash envelope? Simply search in etsy or pinterest the design that you want, download and print it. You can then label the envelopes yourself.Â
Filofax Cash Envelope
Filofax is a company based in the UK that produces a range of well-known personal organiser wallets. The organisers are traditionally leather bound and have a six-ring loose-leaf binder system. You can punch some holes in your colored envelope and simply arrange it in your organiser.Â
How we did it our way
We modified the envelope system to suit our needs but with the same basic principle. Every time we get our paycheck, we first pay our tithes, electricity, water and internet bills. I then distribute cash to each category as per our budget.Â
Thoughts to ponderÂ
Do you keep a monthly budget?
What system(s) work best for you and your family?
Anyone else use the cash budget envelope system?
Do you have tips or recommendations to send my way?Â
Kindly comment in the section below.Â