What are Cash Envelopes?
The cash envelope is a budgeting system that only uses cash to pay for specific cost categories. Each envelope holds the money you allocate for that category each month.
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.
Spend Your Money Carefully
Once your envelope is empty, you stop spending in that category until you withdraw more money after receiving your next paycheck or month.