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Friday, March 26, 2010

Budget : Envelope System

I would love to share with you all a system that has worked for me since I got married. The envelope system works whether you have a little bit of money or more money than you did have. The envelope system works like this

  1. get your paycheck cashed in $20s , $10s, $5s, and $1s

  2. take a bunch of white envelopes and write on the front of each envelop a name of a bill such as gas, food, rent, utilities and also things such as entertainment

  3. divvy up your cash among the envelopes and place them in a safe place

  4. spend and pay your bills out of the envelopes that are marked for them when the envelope is empty that is all you have til the next time you get paid

This works for me. Try it may work for you.


  1. We use the Dave Ramsey version of this method, but only for things like hair cuts, dog grooming, vitamins, and entertainment, clothing and I take out the grocery money in cash as well, but that stays with me at all where the envelopes pretty much stay at home unless needed.
    Great system!!!

  2. i am sending this to my daughter.

  3. I've been wanting to try the envelope system. It makes a lot of sense and seems to work for a lot of people.


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