Use cash envelopes to control discretionary expenses for these categories: – Groceries– Eating Out– Entertainment/Fun Money– Clothing and Accessories– Personal Care– Home Purchases– Spending Money– Gifts
Using cash envelopes will help you stick to your spending plan. Once your envelope is empty, you stop spending in that category until you withdraw more money after receiving your next paycheck or until the following month, whichever comes first.
There may be times when you have money left over in your cash envelopes at the end of the month. If this happens to you, first pat yourself on the back for spending less than what you budgeted for the month.