Why Cash Envelopes?
If you’re struggling with your budget or saving for irregular bills, one of the best and most practical ways to stay on track is to use cash envelopes; a budgeting system made popular by Dave Ramsey.
You can set up as many or as few envelopes as you like, it’s a completely flexible system you set up according to your own needs.
You can find out more about the cash envelope budget system here.
Related reading: 10 Dave Ramsey Money Saving Tips for Christmas
Obviously, you won’t need to use all of these category ideas but hopefully they will act as prompts for spending categories you might have missed on your initial list.
These ideas for your cash envelopes are presented in no particular order:
- Medical & pharmaceutical
- Irregular bills
- Eating out
- Work lunches
- Outings with friends
- Outings with family
- Date nights
- Pet Accessories
- Vet costs
- Back to school
- Kids’ allowance
- Toys & play equipment
- Kids’ clothes
- School lunches
- School excursions, etc.
- Gardening items
- Yard maintenance
- Car maintenance
- Household items
- Cleaning products
- Home Depot
- Spouse 1 – spending
- Spouse 2 – spending
- Craft supplies
- Home decor
- Salon & hair care
- Holiday gifts
- Birthday gifts
- DIY Projects
- Crazy cash (money you can spend without justification)
- Replacement items
How many of these can you use? Did you think of other categories not included in the list? Make your suggestions in the comments so we can add them to this list.
Your Cash Envelope System
Using the cash envelope system means keeping a reasonable amount of cash on hand so you’ll want to keep it secure.
Keeping all your envelopes together makes it easier to keep track of them but can make you vulnerable.
The best idea is to keep your envelopes in a folder, file or planner in a secure location and remove cash for specific purchases as you need it. You definitely don’t want to carry all of it with you, all the time.
Not sure where to start to organize your budget?
If you’re not sure where cash envelopes might fit into your budgeting strategy, we have some articles that are bound to help.
- How to Fix Your Budget
- 50 Awesome Ways to Live Better on Less Money
- How to Slash Your Grocery Bill by 50%
- When Money Is Tight – Tips for Living on Next to Nothing
- 11 Free Budget Printables To Help Get Your Money Under Control