If you always find yourself going over-the-budget, it’s probably because your budget isn’t working for you. Take a look at the cash envelope wallet budgeting system and how it can help you rein in your finances.
Do you sometimes wonder where your money went? Actually, it’s a mystery that plague many people. If you don’t keep track of your purchases, you’ll just spend and spend, and at the end of the day, you won’t even know exactly where your money went.
I know budgeting is not everyone’s cup of tea. Sometimes, it’s more fun to spend with eyes closed and relish the joy of the purchase without any regard of its impact on your finances. But in reality, budgeting is that one activity that allows us to spend without guilt, simply because you know you have the money to pay for it.
Now, I know there are a lot of budgeting methods out there, but if you think they’re pretty complicated, consider going back to the basics: budgeting hard cold cash into different money envelopes.
The cash envelope wallet is a great way to manage your budget, keep a rein on your spending, and enjoy your money without going overboard.
What is the Cash Envelope System?
Table of Contents
The cash envelope wallet system is a basic way to budget your money so you can live within your means, prevent overspending, and achieve financial goals.
It works by identifying areas of spending that you pay for with cash (food, groceries, gas, shopping, entertainment, personal expenses, etc.), indicate the budgeted amount, and take money out from the correct category. You can use the good old white or paper envelopes to start with.
If you think this budget works for you, you can move on to the more cute, functional, and specially-designed cash organizer wallet.
The Benefits of this Budgeting System
1. It instills discipline
Spending cash tends to have a more profound impact on you than using the credit card. You see the money leave the envelope, and then change hands from you to the cashier.
Since you’ll be dealing with cold cash in this budgeting method, you’re more likely to ponder on the purchase more carefully, restraining yourself from unnecessary spending. If you’ve always struggled about going over the budget, then this is the simplest method that will teach you to live within your means.
The cash system wallet teaches you to spend only what you can afford. Like they say, when the money is gone, it’s gone. The cash envelope method tells you right away how much money you have for a specific category, and whether or not you can afford a purchase at that given time.
When you’ve run out of cash in your money envelopes, it’s a sign telling you that there’s no more money to spend and you should wait until you can replenish them on your next paycheck.
3. It teaches you to be creative, practical, and resourceful
If you’re going to stick to the cash envelope system by heart, then you know you cannot shuffle money around categories. Once you’ve depleted cash in your envelope, say in your food budget, then you must learn to make ends meet in other ways.
That means raiding your fridge and pantry and make use of the ingredients you have at hand. If you don’t have any more money for your shopping and personal grooming budget, that probably means doing your own hair and nails instead of visiting the salon, or learning to mix and match your outfits.
Budget Categories to Include in Your Cash Envelope Wallet
The categories to include in your cash envelope wallet are those you typically pay for in cash. Examples of categories are:
- Rent – if you pay it in cash
- Car washes
- Cleaning services/ gardener
How to Make This Budgeting System Work For You?
1.Determine how much money to allocate in each category.
If you’re unsure how much you’re spending in the past, gather your receipts and account statement to get a realistic figure. It also helps to track your spending and adjust your budget the next month, if you deem necessary. You need to be sensible with your spending and figure out the right amount that fits your needs.
2. Bring only what you need
If it helps you budget, bring only what you need. If you intend to go grocery shopping with $100 in the budget, there’s no point in taking an extra $20 for “just in case” you see something that catches your fancy.
The point of this method is to stick with your budget. Don’t make excuses in spending on things you didn’t really plan for. Be intentional with your purchases.
3. Modify your budget until you figure out the best amount in each category.
You may have to tweak your budget accordingly, so expect to go through a trial and error in the first few months. Perhaps you found out that you need an extra $30 for groceries or that you can do with less than $20 in entertainment.
You don’t want a budget that restricts you too much it takes the joy out of managing your finances. Instead, you want a budget that reflects your lifestyle needs and at the same time allows you to reach your financial goals.
4. Get your partner and the family on board.
If you’re doing the cash system wallet as a team effort, you must get everyone involved familiar with the rules and process. For instance, if you have an envelope for ordering take out left at home, your children must know they can’t go over the amount contained in the envelope. You and your partner should also be accountable with the spending, and it often helps to check with one another for important purchases.
This post contains affiliate links. I may earn a small commission at no additional cost to you if you make a purchase through these links. Read my full Disclosure for more information!
Best Cash Envelope System Wallets
I love the cash envelope system because it’s a simple budgeting method to follow and it works! From using paper cash envelopes, I decided to finally move on to the cash envelope wallets because they are more organized, long-lasting and cute, too!
I’ve been searching for the perfect cash budget wallet for a few months now and I am so excited that I have finally found the best cash envelope wallet for me. So, I decided to share my findings here today with this list of the best and stylish cash envelope wallets.
I am in love with this cash envelope wallet! It looks like an everyday wallet and has 8 envelope slots with customizable label inserts for your budget categories. It also has a pen loop and 6 card slots which is perfect for me.
This cash budget wallet comes with 20 labels, 10 budget categories and a refillable pen by Ballpoint Cross Refills. It’s versatile with a unisex design, and also has zipped pocket and lots of room for coupons and receipts.
This is literally a leather cash envelope with cute patterns and 6 card slots inside. I LOVE the design and how classy it looks but it only has one cash holder and one receipt holder.
If you’re still a bit old school and like budgeting with envelopes but want all the envelopes to be organized inside a wallet, then this is for you! This cash budget wallet comes with 12 laminate coating envelopes, 1 binder note for organizing, and 12 budget sheets to help you make budgeting easier and fun. It also has plenty of room for cards, coupons and coins!
This is a stylish cash envelope wallet system made of high-quality leather. What I like about this wallet is it has room for a phone, too! It has 5 card slot and 6 cash slots and one zip coin pocket. It’s functional and looks like an everyday wallet!
Still can’t find the perfect cash envelope wallet for you?
Check out these reusable money envelopes! They are made of high quality plastic and will not wear and tear like your average paper money envelopes. They can also be easily inserted into your everyday wallet!
If you’ve been meaning to eliminate overspending and get your credit card bill under wraps, the best cash envelope wallet could help.
Paying with cash can sting more than the swipe of the card, and you’re bound to become more careful and aware of your purchases. While you can use cash envelopes to follow this budgeting method, you can look at the selections of cash envelope wallet on Amazon to make it more exciting and appealing, such as the Bella Taylor cash envelope wallet.
At the end of the day, what you want to achieve is more order and organization in your finances, and following this basic method could be just the thing you need.
Are you looking for more ways to save money? Check out the following posts: