You’ll see the rewards! Cash Envelopes Help You Budget Look at other places that you want to cut back and save in and make those cash-only. The more comfortable you become using this system, start adding more and more categories to it. ![]() It can be tough to keep track of 10 different envelopes all at once if you aren’t used to it. If this is your first time using cash to spend, start with just two cash envelopes. Want to really make this system work with a spouse? Check out my guide about how to use cash envelopes with a spouse. For example, my husband and I have $50 “allowance” each month. This will help each person in the relationship control their spending. Unless you somehow spend every single second together, each person needs the freedom to be able to spend cash when they are apart. I think it’s best if each spouse has their own “fun money” envelope. Then, next month, add more cash to the envelope or make a plan for how you are going to spend less. ![]() Put things back and go without, if you can. Don’t just grab money from another envelope. I challenge you to use those times when you run out of cash as a lesson. When you run out of cash, you realize that either you didn’t plan for enough in your budget or you need to spend less. Running out of cash happens to the best of us – yes, even my family. Unless you are a psychic, it’s pretty darned tough to predict exactly how much cash you need each month for each category. The cash envelopes should be for eating out, buying clothes, groceries, and other things that are really easy to overspend on. Keep those things in your budget, just don’t put them in cash envelopes. There are some bills that will give you a discount for paying online (and it’s just easier to do it that way too). Some people actually section their budgets into two categories – online payments and cash payments. Use Cash Envelopes For Things You Can Pay For With Cash You can either choose to take the online shopping envelope back to the bank or you can keep that cash on-hand and use it next month to fill up the next round of envelopes. When you buy groceries online, (for example) move the cash you spent from the grocery envelope to the “online shopping” envelope. Then, fill all your envelopes with cash like you normally would. It should be empty at the start of the month. How do you shop online with cash envelopes? These days it is so much easier to shop online for everything, even groceries. It’s perfect for things like clothes shopping, beauty shopping, entertainment, and even gas. Instead, use this as a way to control impulse buys. You don’t have to use cash to pay for every single thing. Handling the cash and seeing how much money you have left in your categories is the biggest benefit of this system. How often does your budget refresh? If you budge once-a-month, even if you are paid bi-weekly, fill up your envelopes once a month. This is because the envelopes go right along with your budget. ![]() You should withdraw cash and fill up the envelopes every time you are paid. Here are a few of my favorite must-know tips that will help you get the most out of your new cash envelopes. If you are new to cash envelope budgeting, start with my cash envelope guide. ![]() This turns normal letter envelopes into cash envelopes with an easy-to-use register on the front. Instead of printing, cutting, folding, and gluing, Carrie Elle created a printable label that you can glue to regular envelopes.
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