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- Budget each paycheck. Budget is a dirty word to most people, but you must budget down to the last dime if you’re going to successfully implement the envelope system. Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdrawal. However, you can create categories like food, gas, clothing and entertainment.
- Fill ‘er up. After you’ve categorized your cash expenses, fill each envelope with the money allotted in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
- Paperback: 100 pages