Your toddles's party of a Budget
Posted on Apr,16 2019
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3 Ways to Use the Envelope Budgeting System Plus Free Printables!

Did you know that budgeting shouldn’t be stressful? If you struggle with budgeting or making time to track your expenses, the envelope budgeting system can be an easy way to track your finances. This management technique helps you track each month how much money you have in your budget for different categories. 

By getting an envelope for each monthly expense, such as groceries, utilities, and rent, you can set an amount you want to spend for them each month. This system will not only help you keep track of your finances, and save money each month, but also help with impulse purchases. 

How to Use the Envelope Budgeting System

1. Create categories and set a budget

It's important to divide expenses into categories, in order to allocate a budget for them each month. By doing that, you will make sure you’re not spending more than necessary for that type of expense. 

2. Add to Each Envelope

Once you set the budget for each category, label the envelopes, cash out the necessary amount, and place them accordingly in the envelopes. 

3. Spend Wisely

When going to a store or paying your bills, make sure to have the envelopes with you. Use the money for the respective category when it’s time to pay, and save the receipt inside. Any money left over can be rolled over to the next month, or put into a savings account/envelope.

Free Envelope Budgeting System Printables

To help you get started with the cash envelope system, we’ve included free printables you can download and print. In order to create your own money envelopes, simply cut, fold, and glue according to the instructions. Download here.


Other Money-Saving Methods Plus Printables

The envelope technique is not the only effective way to improve your financial health. Here are two other money-saving methods to provide you with some inspiration.

Participate in a Savings Challenge

If you need motivation when it comes to saving money, why not participate in a savings challenge to keep yourself accountable? For example, a no-spend challenge where you stop buying things you don’t absolutely need, or a year-long saving challenge that’ll help stack your savings account quickly.

Download the Family Savings Challenge here.


Use a Monthly Budget Tracker

Even if you already have a healthy emergency fund, a budget tracker or worksheet will allow you to track how much money you’re earning, investing, and spending each month. Unlike the envelope method, you aren’t restricted to only spending with cash, which allows much more flexibility. Though manually tracking your expenses can take up some time, it’ll also force you to think about potential ways to cut down on your spending and improve your money habits.

We’ve included a Mason Jar Savings Tracker printable below to help you start building your savings in a fun and interactive way.

The purpose of the envelope system is to help you stay in control of your savings and expenses. Once you’ve spent all of the cash in an envelope, it’s gone for the month and you won’t be able to dip into other envelopes. This forces you to stay disciplined and truly make an effort to improve your money management skills and spending patterns.

Even if you don’t consider the envelope system as a suitable budgeting option for you, with plenty of budgeting apps and softwares built around the same concept, you can still manage your spending without having to stick to the cash envelope budget method. 

Download the Mason Jar Savings Tracker here.


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