![]() ![]() For example, your rent is always the same amount, as is your car loan payment. Variable expenses are ones that change from month to month. Then write down all your expenses, both fixed and variable. If you have multiple sources of income, add those together to come up with your income amount. Write down your income for your budget period – the amount that you bring home in your paycheck. I prefer to use a monthly budget, but you can budget by your pay period, if you prefer. To use the cash envelope wallet, start by making your budget. ![]() The system works the same whether you’re in serious debt or not at all.It works exactly the same whether it’s the first time you’re using the system or if you’ve been using if for years.The cash envelope system is proven to work for people of all budgeting experience and in all financial situations.The cash envelope system has been around for a long time, but was made popular by Dave Ramsey in his book, The Total Money Makeover.You can start using the cash envelope system right away with very little difficulty because it is easy to understand.The envelope keeps you on track and on budget. There is no honest forgetting, making a mistake, being confused or conveniently “forgetting” about your budget which can lead to overspending. The cash envelope system works so well because it’s a concrete, visual way to know how much money remains in each category of your budget.The cash envelope serves as a concrete limit on what you can spend in each of the categories.You remove money from the envelope to pay expenses in that category. Simply put, a cash envelope is an envelope used to hold the budgeted amount of money for each variable (changing) category of your budget.Today there are beautiful and fun cash envelopes to choose from.Īnd why not make budgeting a bit more fun to encourage you to use it? What is a Cash Envelope? ![]() Back in the day people used simple blank envelopes for a budgeting system. ![]()
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