Let’s Talk Envelopes!

So, a little while ago I started using a cash envelope system. I wanted to test it out for awhile to see if it would actually work for me. I did a little research into this idea and came up with quite a few articles all outlining exactly how to go about using the envelopes and how to efficiently incorporate them. Dave Ramsey gives a great description in this article The Envelope System.  The The Budget Mom also gives a great example with pictures which I loved! I used hers as the basis to get started. First of all, I had to decide what categories I needed for my envelopes and then I had to decide how much I was going to allow myself each month for the categories.

  1. Bills
  2. Gas
  3. GroceriesIMG_1668
  4. For Fun
  5. Others

These were the categories I decided on. For my ‘bills’ I included my rent and utilities, ‘for fun’ included going out to eat, for drinks and other activities and ‘others’ included any medication, beauty supplies, clothing and house stuff.

I figured out how much I usually spend on these items by tracking my spending for awhile and then decided on an amount that I could spend for each month on them. I gave each a different colour to keep them organised. I planned out my shopping strategically so that I didn’t have to carry these around everyone and it also limited non-sense spending.

I am very much a visual learner, so this was PERFECT for me! I was able to see exactly how much money I had for the month and what it was going to be spent on. It eliminated a lot of unnecessary spending and it forced me to stop and think about what I was spending money on and whether or not it was worth it! I realised that I can still have fun while saving money!

I would 10/10 recommend this technique!


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