Cash Envelope System

How is your saving habits going this year? Many people like to set up a plan to save some extra money when the new year starts. Here is a way to help you organize your savings. Do you have issues saving money for important items like groceries, gas, and emergencies? Each month or paycheck, there is a way to put money away for these items and more to help you out for when you need some extra cash. A great way to do save for specific items is by starting a cash envelope system. This system is designed to put cash towards necessities or fun in moderation. This system can work with your paycheck every two weeks or once a month. The first step is to make a list of the items that you need to budget for. Here are some ideas to get you going:

• Groceries
• Eating out
• Doctor Visits
• Gas
• Beauty

Once you have decided which items you want to save for, it’s now time to decide how much you want to put into each envelope every 2 weeks or every month. Here are some suggestions for the amount to put in each envelope:

• Groceries = $200.00
• Eating out = $50.00
• Doctor Visits = $50.00
• Gas = $75.00
• Beauty = $30.00

These are just suggestions. You can put away as much money for these items as you would like to make the budget where you want it to be. From there, your system will be used when you need the cash. You will only use the money available to spend on your items. Once the money is gone, it’s gone. This will force you to prioritize your money and focus on the bits and pieces that are important to your budget.