Here are the options that fit most, if not all of my cash envelope wallet criteria: The wallet needs to be somewhat affordable (under $100).
The wallet needs to be separate and not attached to a larger purse/handbag.The wallet just needs some overall closure device to make sure the cash doesn’t fall out. You DO NOT need the individual envelopes/slots to zip. This eliminates most of the 100% handmade cloth options. The wallet needs to be relatively thin.The coin storage is really important as many options on etsy don’t have a place for change. The wallet needs to accommodate all of my “wallet-y” items, including my various cards and coins.The wallet needs to accommodate 3-6 cash categories.You’ve proven that you can live on a cash envelope system and justify the cost.Īfter living on cash envelopes for over twelve years, here are my criteria when selecting a cash envelope wallet system:.My rule for starting any system is “simplest is best.” Start simple with using plain old small mailing envelopes, then move up when: Once you get the general idea of how it works and decide to make the change, you will need to set up a cash envelope system. If you didn’t drive as much this paycheck and saved that money in fuel, that extra money can go toward a different envelope category now.I firmly believe that moving to a cash envelope system of cash flow planning (budgeting) is one of the smartest financial moves you can make. Imagine if you’re constantly over $50 in all of your categories each month. Whatever you’re saving for, just apply that extra money right to your savings. Or perhaps you’re saving for a vacation later down the road. Some are saving up for a bulky emergency fund. This can be whatever you’re saving up for right now.
If you’re in the process of paying off your debt, every little bit counts!ĭeposit the leftover cash and apply it directly to your principal payment (don’t apply it to your next payment that includes interest!). There are a few different things you could do, depending on where you’re at in your financial journey. What if you have leftover money in your envelope? What to do with leftover money in cash envelopes
Best wallet for cash envelope system download#
If you need some help figuring out all of the right budget categories for your own budget, be sure to download our free printable with over 150 potential household budget categories you could be incorporating into your budget! Like I talked about in the last section, the best categories to use with the cash envelope system are those that you pay at the counter.Ĭategories like food, fuel, and entertainment are a few of the ideal categories to pay with cash. Categories to use with the cash envelope system Using the cash envelope system is an amazing way to keep your budget in check and help you reign back spending. With debit cards, it’s a simple swipe, and hope the money is there. Handing over cash activates the pain receptors in your brain and makes you want to not spend it. It’s the best way out there to keep your budget in check. The important piece here is that, once you run out of cash in that envelope, you’re out! Use your cash to pay for those expenses until next payday. Next, stuff your envelopes with how much belongs in each expense category.
I always take out my cash in $5s, $10s, and $20s because it’s easiest to divvy up. Say you have $350 allocated this paycheck to everything you want to use cash for, like food/coffee, fuel, movies, and blow money. Once you have the categories that you would like to use cash for, it’s time to use your monthly household budget to find out how much you’re allocating to those expenses.Ĭalculate how much in total you will need to take out in cash by looking through your budget and adding those categories together. So, expenses like loans/credit cards, cable/streaming, utilities, and insurance will likely continue to be paid through your debit card.Įxpenses like food, fuel, entertainment, and other things that you pay at a counter work great for cash envelopes. The biggest issue will likely be which budget categories you should use with the envelopes, which should be easy after we talk through it!Ĭash envelopes are ideal for things you are able to pay cash for. The cash envelope system is actually pretty simple once you get started. Check the price How do you use the cash envelope system?
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