Saving Money Using the Cash Envelope System

Hey yall!

I want to share with you this new thing I’m going to start doing with my money. Yall know I am all about saving, budgeting, and staying organized so you should know that this Cash Envelope System is PERFECT for me (if you’ve ever heard of it). If you haven’t I’m going to give you my version of a run down of how it works (for me anyway).


This system helps you visualize your money so you aren’t swiping away money you may not have using a debit/credit card. this system makes every transaction with CASH. You divide out what categories you spend money on such as: Food, Clothes, Gas, Nails and Hair, etc. and there will be an allotted amount of money in that certain envelope/folder for it. Once that money is gone, it is gone. That’s all you can use on your nails and hair. Now THAT section may be gone, but you still have other money in your other folders for your gas and groceries. So you have a specific amount of money that you can use on specific things for a certain time period (your pay period).

I have many reasons why I like this method: 1. since you are working with cash you can see how much money you have and how much money you don’t, so you can’t spend money you don’t have. 2. By using only cash to buy things you decrease the risk for Identity theft and someone getting ahold of your card and using your money. 3. It is just super organized and you can personalize it to fit you.

You May Also Like: Cash Envelope System | WITHOUT CASH

Here’s How It’s Done:

1. Make a list of everything you spend money on.

With that list, estimate how much money you use for each category with 1 paycheck. So I calculated mine on a 2 week basis because I get paid every 2 weeks. Also, you can visit your bank accounts website and see everything you’ve spent money on and see what falls into what category and average it out on a 2 week (or your pay period) basis.

2. Purchase a small accordion folder from the Dollar store. In my case, while I was at the dollar store looking for an accordion folder I came across a mini photo album/book that I thought would work perfect (and it was pink). So that just goes to show that you can use whatever system works for you, I’ve seen it done in MANY different ways (if you want some ideas, search Cash Envelope System of Pinterest and a lot of different ideas will come up).

Decorate it how you want it, personalize it, make it YOU! (I plan on adding a label on the front or something else, so don’t worry. It’ll be cuter than this, I promise). I used Duct Tape to make the labels on each page so if categories change I can easily take the tape off and move them around.

3. The first half of my photo book is where the money I have to spend for those 2 weeks will go. I left a extra sections for if new categories get added.

4. The second half of the photo book is the money left over section. This section is used when the 2 weeks is up and I still have leftover money in the first half of the book. I’m going to move that money to the back and refill the front to use for the next 2 weeks. This is because if I go to get my nails done and I have $30 in that section for the 2 weeks but my nails cost $35 I can flip to the back and see if I had any extra money from that section from the last period to use. I’m going to keep it here for the next 2 weeks and when I go to switch it out again I’ll take the money already in the “Left over” section and put it BACK into my bank account, but in my savings. Then I’ll continue the cycle.

This way I am saving money, only spending certain amounts of money on certain things so I don’t go overboard, and I’m organized. A win-win-win!


5. In the back I have the KEY where I have how much money I am designating to each category. (I used a sticky note so if those numbers changed I could just write a new sticky note instead of having to get a new photo album).

If you can tell, off to the side I wrote out exactly the bills I needed to make that amount. This makes it easier for when I go to the bank because now I can just ask for 6 20’s and 4 10’s and I’ll have a reference in the back so I won’t forget.



I hope this idea has sparked some creativity inside you!! I love this method of staying on track because this way I am able to save money.

If there is any confusion or you need clarification please leave me something below and I would love to get back to you and help you take advantage of this awesome method of budgeting!

**I based my amounts on a $200 paycheck because my checks aren’t always the same, but I usually make around there.



12 thoughts on “Saving Money Using the Cash Envelope System

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