Cash Envelopes: 7 Ways 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, but Cash Envelopes can help.

Thankfully, most people tend to overspend on just a few budget categories, which is why cash envelopes can be effective. They are a simple tool to control spending in those targeted areas.

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.

First, determine the categories you tend to overspend on. Then tracking your spending can help figure out where your money is going.

Cash Envelope Categories

Take those categories and figure out how much you want to spend in those. Then create an envelope and put the allocated cash in it. 

Time to head to the bank to get the cash. The cash will be put in your designated envelopes.

Get the Money from The Bank

Divide the total amount of money you will need by your number of paychecks for the month to determine the cash to withdraw.

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