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What is the Cash Envelope System and How Does it Work?

Updated: Oct 19, 2021

Do you feel like you're constantly worried about money? Do you find yourself having to wait until next paycheck to buy something or do something you want?


WELCOME - to the world of budgeting using the Cash Envelope system.




The Cash Envelope system is exactly what it sounds like. You physically put cash into envelopes that is based off your personal budget and lifestyle. YOU decide how much you can put into each envelope and YOU decide how often (depends if you are paid, monthly, bi-weekly, weekly etc.). Everyone's budget looks different which is why this system is customizable!


Budgeting isn't about limiting yourself. It's about making the things that excite you possible.

Here are some examples of Cash Envelope categories. You need to analyze your spending habits/lifestyle to determine what categories make the most sense for your budget.




These examples categories above will help you feel less stress in your everyday spending. No one should ever have to worry about money, especially for necessities like groceries and gas.


Other popular categories people have for their Cash Envelopes:

Holidays, Christmas, Children/kids, Medical, Birthdays, New Car, Home, etc.


Cash Envelopes is great for beginners because it allows you to physically see where and how your money is being used. The great part about it is, you get to decide! This system allows you to still live an exciting, fun filled life without feeling trapped or limited.




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