Just as every budget is customized, so is your cash envelope system.

What is a cash envelope system?

When you begin working with me, we will take a look at your overall budget and decide which expenses are best to use cash. You then withdraw that amount from the bank on a regular basis to pay for these expenses, typically weekly or biweekly.

Common cash expenses include:
Groceries
Gas
Nail Salon
Rounds of golf
Dining out
Me/personal miscellaneous expenses like coffee

Ways to Work Your Cash Envelope System (1)

Cash Envelope System Options

Working together, we decide the system that works best for you.

Needs vs. Wants – Needs are things that you must have to survive. Think: food, water, shelter. You have to have food and a way to get to work to make money for the rest. Wants are everything else. For example, you would have a needs envelope with budgeted cash for groceries and gas and a wants envelope for nail salon and round of golf.

Categories – You may decide that you need an envelope for each of your budgeted cash expenses – an envelope for groceries, an envelope for gas, and so on.

Do you have to use envelopes?

No, you don’t. You can separate the money in your wallet or purse. The important part of the process is to be fulfilling the wants and needs using the cash as budgeted. Some people find it easiest to use envelopes.

What’s the best part?

As you’re spending your cash, if you have some left over, you can choose to spend it however you want. Some clients call it a cash stash. They save for months and make a big purchase while others spend it at the end of the month on a smaller purchase. It’s up to you how you spend it.

At Fiscal Fitness, we take the stress out of money by providing solutions to help you meet your financial goals. To learn more about cash envelopes, personal budgets, and more, make an appointment today!