Learning How to Budget Using Envelopes and Cash is a great way to really get control of your personal finances once and for all.

The envelope system is a nearly foolproof way to stick to your budget because you can physically see exactly how much money you have at any given time.  Here are the basics of using envelopes and cash to budget.


First things first, you need to have an envelope for each category in your budget.

For example, groceries, gifts/donations, utilities, and fuel would require four separate envelopes, each labeled on the outside, with the category.


Once your lovely paycheck hits the bank, be sure to head to the bank and retrieve your cash, so that you can allocate it to the proper envelope.

When you leave your money in the bank and use a debit card to spend your money, it can be too easy to spend more than you had budgeted.


When it comes time to pay your bills or buy groceries, it is important that you use only the money from the proper envelope.

So, if you only have thirty dollars in your fuel envelope, you can only buy up to thirty dollars worth of gas. If it is not enough, get creative, and consider other options.

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