How to Budget and Spend Wisely with an Envelope System

How to Budget and Spend Wisely with an Envelope System with free printable monthly budget sheets and money envelopes in cute prints!

If you have not done so already, following a budget is a great way to secure your finances.

By using a budgeting system, you will be able to calculate your expenses, as well as set aside a certain percentage of your income into your savings account.

Although any type of budget will definitely help your financial situation, using an envelope system is sure to make your budget more effective.

Set Your Budget

Before you can begin using an envelope system, you’ll want to decide what your monthly budget is.

In order to do this, you’ll want to write down your income, as well as all of your expenses, such as bills and groceries.

If you’re not sure where to start, our monthly budget printable can help you calculate your income and expenses, including those variable expenses such as gas and eating out.

Label Your Envelopes

Once you’ve calculated your monthly budget, it’s time to bring out the envelopes.

You can use an ordinary envelope or download our printable money envelopes designed specifically for this budget-friendly system. 

No matter which envelopes you use, you’ll want to label each category, such as bills, groceries, and gas.

Spend Wisely

After your envelopes are labeled, you can put the allocated budget amount in each of them.

If you want to spend $105 in groceries, put that exact amount in the appropriate envelope. Make sure that when you are out shopping, you only use the grocery envelope for grocery purchases.

Never grab money from the envelope for a different purpose.

This wise spending habit will help you stick to your budget, bringing you one step closer to financial security.

Do you use an envelope system? What tips do you have for sticking to your budget?

Elizabeth Lampman

Elizabeth Lampman is a coffee-fuelled Mom of 2 girls and lives in Hamilton, Ontario. She enjoys travelling, developing easy recipes, crafting, taking on diy projects, travelling and saving money!