The envelope system isn’t new, it’s been around for a while. But there are still people that don’t know anything about it or how it works. I didn’t until I started listening to Dave Ramsey, he’s a financial advisor with lots of advice and opinions. He promotes using cash to control spending because you spend money differently when you use cash. When your breaking bills and watching the money disappear your more mindful of your purchases. Not to mention there’s no way to overspend or go off budget. When you pay for things with your debit card you don’t see the money so you don’t feel it as much as when you use cash. I know that’s the case with me, when I have my debit card I may end up putting that really cute “thing” from Target in the cart or maybe make a quick stop at Home Good’s because it’s right there. When I have cash and a list I stick to the list and never spend more than I want to.
If your interested in using the envelope system I would suggest you start with a budget so you know how much money you have to allocate to your envelopes. Then you need to assign categories, examples include groceries, transportation, fun money, clothing and so on. Then you fill the envelopes with money, draw half from bi-weekly paychecks and quarters from weekly paychecks. Remember to take your envelopes and spend cash.
When I first started using the envelope system I’d forget to take them and would end up having to use my debit card anyway. My envelopes were plain and ugly and I wanted pretty ones. I mean, sure you can buy some from Etsy and tons of other places online but what’s the point of creating a budget and using cash to control spending just to buy pretty envelopes? I took a peak in my craft stash and realized I already had everything I needed.
- pretty scrapbook paper
- Mod Podge
- label maker (optional)
I grabbed some scrapbook paper, traced the envelopes on the back and cut them out. I brushed Mod Podge on the envelope and attached the scrapbook paper. Once it was dry I Mod Podged the scrapbook paper to seal and protect it since they get plenty of use. I made labels for each envelope with my P-touch.
I love using the envelope system and my pretty new envelopes make me smile every time I pull them out in the store.