We'll even cover why this particular method is the easiest cash envelope system for beginners. For us, I take our monthly budget and then divide it up among the amount of weeks in that month. A memo pad, coin and receipt pouches, checkbook holder and debit card slots will make this your new favorite way to get organized and stay on track. Ready to Start Budgeting with the Cash Envelope System. Think of all the categories you would need cash for food, gas, dining out, Health and gifts for instance. This helps make sure you aren’t tempted to overspend, you set budget boundaries, and you stay with your budget month after month. To make the system work, you stop spending money from that category when the envelope runs out. I created a special jar (from my cash jar days), to pop all this extra money into with a special label to keep me motivated. These simple envelope budgets are really easy to start. Once you have worked out your Budget for the month you can start filling your envelope categories with those cash limits. Some examples of these categories are: groceries, clothing, entertainment, eating out, kids things, gifts, fuel, household items, health & beauty. Review your budget: For the envelope system to work, the first thing you need to know is how much money you have coming in and how much you have going out.Start by making sure your budget reflects your current financial situation. To keep it easy, start by choosing 2 cash envelope categories. The cash envelope system was a game-changer for my family and I think it’s the perfect way to start getting your budget on track. If so, you probably have had questions about how to use the cash envelope system. One of the big advantages of the cash envelope system is that you can only spend what is in your designated envelope for that month, week, or pay period. This is the simplest way to track your spending and help dig yourself out of debt. Find a friend or accountability partner to use cash … Get even more tools to help manage your money with our Deluxe Envelope System! If you feel like you're drowning in debt and looking for a way to manage your money the cash envelope system is where it’s at! There are many, many people that use the cash envelope system and refuse to use any other method for managing their money. ... START WITH YOUR REGULAR BUDGET. The cash envelope system is a better visual way to keep track of your budget and not overspend. The advantages of the cash envelope system are great! How do you start the Cash Envelope System. Don't believe the myths that it doesn't work - because it DOES. Use those cash envelopes for a few months. Choose your cash envelope categories Learn how to use the cash envelope system and find a printable cash envelope template to help you get started using this budget method. There is a psychology to using cash to make purchases (it feels painful to us) versus just swiping our card (no emotional consequence for us). Your cash envelope system budget categories will vary per month and so you will need to determine all of the expenses that you are planning to pay using cash. 1. BUT, there is a way to make the cashless envelope system feel the same way as using cash. This method involves a systematic way … It is an awesome way to get your spending under control and learn how to budget. If you don't already have a budget, establish one. If you end up liking the cash envelope system, slowly add to your cash envelope categories! It makes you use actual cash and separate it into corresponding envelopes. Using the cash envelope system without cash will still allow your spending to be visible and tangible. How to Start the Cash Envelope System. When I decided to embark on this adventure of a cash only system, the first thing I did was sit down and print out all my credit card statements for the last two months. Cash envelope system categories. Using all cash makes budgeting a whole lot easier but sometimes it can be difficult to figure out where to start. Upgrade to The Ultimate Cash Management System. The idea of using cash envelopes can be stressful. Creating a Budget For the Cash Envelope System.