If you are new to budgeting this system may be a great way to get started

 

The concept is simple. It works well as a follow up to building your budget. This system will keep you honest because you are forcing yourself to work with actual cash not credit or debit cards. 

Traditionally, people have used the envelope system on a monthly basis, using cash and envelopes. More recently, people have adopted digital methods, including spreadsheets and apps like Goodbudget and  Mvelopes.We encourage you to explore the best fit for you.

Envelope Systems Steps to Success:

  1. Use the Budget Planning Worksheets to create your working budget.
  2. Build your list of expense categories (rent, gas, groceries, entertainment, dining, etc).
  3. Using whatever envelopes you prefer, write one expense category on each one — and then put the money you have budgeted on those things into the envelopes.
  4. As you spend, replace the money in the envelope with your receipts so you can track your spending in each category. Be sure to record your spending in your budget worksheet.

TIP: Keep your envelopes in one place, and ONLY TAKE THE ONE OR TWO YOU NEED EACH DAY.

When the money is gone. You are done spending in that category!