This post was last updated October 2018.
If you're already working on fixing your finances (whether it's from my Being on a Budget post or my Fixing Your Finances book), you are probably feeling really motivated to create a spending system that works for you and the KEY to taking control of your spending is using cash and keeping it organized.
I've shown off my original Filofax Budget Envelope System and I want to give you the tips to make your own!
Step 1: Pick Your "Wallet"
What I Use: Filofax Temperly personal size
What You Can Use: I will forever sing praises for the Filofax organizer because you can put so many other things in there besides your envelopes but if you don't want to get this fancy you can also use a plastic expanding file for coupons. Anything with a loop closure, snap, or zipper will suffice.
There are other Filofax options that zip up here, here and here.
You can find cheaper small expanding organizers here and here.
Step 2: Pick Your Envelopes
What I Use: Plastic Zip Envelopes
What You Can Use: You can find zip envelopes here, here, and here.They are perfect for keeping your cash secure and safe. I used a label maker to put the name of each category on the front of the envelopes.
Step 3: Organize Your Loyalty Card and Gift Cards
What I Use: I keep my loyalty cards and gift cards in the first pocket.
What You Can Use: If you have a basic accordion file you may just want to place your gift cards and loyalty cards in the first or last pocket.
Step 4: Organize Your Coupons
What I Use: I keep my coupons in the second pocket of my Filofax.
What You Can Use:You can keep yours anywhere, even in it's own pocket in a mini accordion file. You want them to be with you at all times so there's no excuse not to use them!
Step 5: Create an Expense & Deposit Log
What I Use: I made my own Transaction and Deposit Logs
What You Can Use: Download and print my free Transaction Log and Deposit Guide. You can also make your own in Word or Excel. Whenever you make a deposit or spend from your envelope you MUST log it. The Deposit Guide allows you to know what amount to put in each week or biweekly when you get your paycheck. I've become accustomed to the joy of withdrawing the money at the ATM and filling up my envelopes.
If you have money left over at the end of each month in certain envelopes you can either:
A. Roll it over to the next month (a great idea as it creates a mini savings fund like I talked about in my budget post.)
B. Take it out and move it to a different category you would rather have it in.
C. You can also roll it over to act as the next deposit into that envelope or another envelope. That way you take out less cash on payday.
If you are short in a category and need the money for an emergency you can:
Do what I do with my Vet Fund. Say that one of my Chihuahuas gets sick and needs an emergency vet check up. The bill ends up being $200 but I only have $100 in my Vet fund.So I will take that $100 from my Vet Fund and combine it with $100 from my emergency fund (see my emergency fund post.)
Did you know that I offer a budget spreadsheet, debt tracker, and I have a financial book available for purchase?
If your envelopes are getting too full you can:
Take the cash out and put it into paper envelopes that go in a safe in your home. This way you don't have to worry about carrying a large amount of cash on your person and your envelope system will have some breathing room.
Get your FREE Financial Spreadsheets HERE.
Did you register for my e-course yet?
Enroll in my Fixing Your Finances e-coursefor the sale priceand you'll learn everything you need to in order to reduce your debt and become debt free, build up a savings fund, stop using or safely use credit cards, and live on a balanced budget where you can actually control your spending. I promise my course WILL help you.
And I have a Facebook Group!
Be sure to join my Facebook group, Fixing Your Finances, to help you with your finance journey along the way.
Posted byEllen Ross | Ask Away Blog
Labels:being on a budget,budget envelope system,budgets,cash envelope,cash envelope system,creating a budget envelope system,Filofax,filofax envelope system,Finance,money,money management,Organizing
