Cash Envelops: Best Solution to Spend Less

Creating and sticking to a household budget is no small feat, especially if you are new to budgeting. Chronic overspending causes carrying credit card debt, so it's crucial to master budgeting and learn to live below your means.

What are Cash Envelopes?

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.

How do You Use Cash Envelopes for Budgeting?

Decide on Your Cash Envelope Categories

First, determine the categories you tend to overspend on. Tracking your spending is the best way to figure out where your money is going. Track yourself every day for two or three months to get a clear picture of your spending habits.

Pull Money Out of the Bank

 Withdraw the funds in congruence with when you get paid. Divide the total amount of money you will need by your number of paychecks for the month to determine the cash to withdraw.

Spend Your Money Carefully

Using cash envelopes will help you stick to your spending plan. Once your envelope is empty, you stop spending in that category until you withdraw more money after receiving your next paycheck or until the following month, whichever comes first.

Ready to Start Using Cash Envelopes?

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