Here is a list of budget categories for any type of budget system. Here are some category ideas for your cash envelopes. You should have a pretty good idea of what your spending is like. My “Restaurant Meals” expense includes any eating out of the house. My “Groceries” expense includes anything we get from the grocery store or convenience store. Once you figure out your categories, you need to set money limits for each one. Figure out Your Variable Expense Categories Here are some variable expenses examples:ģ. Variable expenses are expenses that change every month. What are Fixed Expenses vs Variable Expenses?įixed expenses are the expenses that are already set each month. The cash envelopes are intended for variable expenses. Now that you have your category amounts established, you can set up your cash envelope categories. This will give you an idea of how much money you should allocate to put in each envelope. At the end of the month, add up how much you spent in each category.
#CASH ENVELOPE CATEGORIES LIST FREE#
If you haven’t done this yet, take the time to track your spending for one month.ĭownload this free expense tracker printable and write down everything you spend. Tracking your spending allows you to see how much you spend in each part of your budget. Once you get your budget in place, you can move on and track your spending. If you haven’t done this yet, then you should follow my step-by-step guide to making a budget. If you don’t know where your money is going, then you can’t successfully manage it. In order to successfully use the cash budgeting system, you need to make sure you completed the following two things. Keep your eyes on the goal of managing your money properly. Making changes or starting new habits can take time. Please keep in mind that changing your money habits can be overwhelming at first. Steps to using the cash envelope system.
#CASH ENVELOPE CATEGORIES LIST HOW TO#
Now that you understand more about the envelope budget system, I’m going to show you how to use it. Grab your Free Printable Budget Planner! How to Start Using Cash Envelopes If you stick to the cash method, you will not overspend. It defeats the purpose if you pull out a card when you run out of cash.
This money envelope method only works if you commit to it. The cash makes you much more intentional about what you’re spending. With this method, you see the actual money when you spend it. Have you ever noticed that you spend more when you don’t have physical cash?Ĭards are easy to overspend with. Do Cash Envelopes Work?Ĭash envelopes keep you limited to the money in your envelope. This will help keep you from overspending and getting into debt. The envelope budget system keeps you accountable for the actual cash you have. At the end of the month, you can see how much money you have left in your envelope. Over the month, you will track your spending on the specific envelope you spend from. Each envelope will have a budget category and the amount of cash you specify for that category. The cash envelope system is a way to track your budget with cash.
Use only the Cash You Specified for the Category Since there are different budget methods, this post is going to specifically focus on the cash envelope system. My goal is to help you get your budget in place and find the best budgeting method for you. The consequences were painful so we knew that we had to get a budget in place to stay debt-free.Īll that to say…you need a budget. Thankfully, God gave us the wisdom to get it paid off but we still had to suffer the consequences. It was a rough road when we had to settle that debt (you can read more about our debt journey on my about page). Eventually, they catch up with you, and you are overwhelmed with credit card debt.Īs you know, my husband and I were in the credit card debt cycle. Living off credit cards is pretty comfortable until you have to pay them. Making the decision to start a budget is hard. All Bible quotations are from the New King James Version (NKJV) unless otherwise stated Bible Copyright Attribution. Please read my disclosure policy for more info. I may earn money from the companies mentioned in this post with no additional cost to you.
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