The Cash Wallet- Part 2
Friday, August 12, 2011
Thanks Angie for helping me make my awesome cash wallet! I am so thrilled to be trying out a new way to budget- The Cash Envelope System. I have always wanted to try to use the cash envelope system. This is a system where you just pay cash for everything. The cash is divided into categorized envelopes. I was always nervous that I would lose the envelopes or that they would get buried in the bottom of my purse. Well now I have the envelopes built into my wallet so I don't have to worry anymore. I no longer have an excuse not to do it.
Here are the simple steps for using a cash envelope system:
1. Decide each month how much you are going to spend on a category (ie: $200 for groceries, $50 for clothes etc.)
2. Take that out in cash and stick it in the envelope for that category
3. When it is gone, it's gone! You aren't spending more than you planned.
4. You now know how much you are actually spending.
I really hope this encourages everyone to try this. Even if you aren't on a tight budget, this is still perfect because at the end of the month you aren't scratching your head saying, how did I spend $321 on eating out?
I would love to hear your success stories using the cash envelope system. I would also love to hear any other great budgeting tips that have worked for you!