1. Create Categories and a Budget
Create clear categories so that you know exactly where your money is going and how much is being spent.
2. Label the Envelopes
After deciding which categories to include in your spending budget, you’ll next write the names of the category and the budget amount on each envelope.
3. Allocate Funds to Each Envelope
Place the allocated funds according to your established budget into each envelope.
4. Spend Wisely
When it’s time to go grocery shopping or pay your bills, take funds from the appropriate category or simply carry the envelope with you on the trip.
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The Envelope system is a way to track your variable expenses like food, entertainment, and drinks.
This method, preferably used weekly, allocates a certain amount in each category in labeled envelopes (food, drinks, movies, etc.). Once the envelope is empty, you are done spending in tha...
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