✅ Cash envelope system UK
The cash envelope system is a method of budgeting that allows you to allocate a set amount of cash to each envelope.
I'm Steph, mum of three! 👋
Here, I share practical insights on making (and saving!) money. With a knack for budgeting and a passion for financial freedom, I've picked up lots of tips & tricks along the way. And I can't wait to share them with you here!
Made popular by Dave Ramsey, the US money guru, the using a cash envelope system has been shown to help curb over spending, and it works.
✅ What is envelope budgeting?
Envelope budgeting where you literally use a number of envelopes to budget cash each week.
For example, you might have 5 envelopes, labeled:
- Food shopping – Food shopping is often the biggest expense for many families and so using a cash envelope to budget can help bring the cost down
- Fuel – This is the easiest one. We know pretty much what fuel costs and what we use. If we use the car less one week, that’s a bonus as there’s less to fill up next week and they’ll be money left in the budgeting envelopes at the end of the month
- Entertainment – Using a cash envelope for your entertainment budget allows you to get the whole family involved and decide how it should be spent
- Clothes – Kids need new clothes and cash budgeting helps spread the cost
- Extras – Things spring up and although usually they’re small things, they’ll throw you off track if you’ve not allowed some cash to cover them. The budgeting envelopes like this one get the least amount in it and a different amount each month depending on what we’ve got spare
The theory behind this is that it’s far easier to budget when you’re using cash as it feels more real than a debit or credit card does, making you less likely to overspend.
You can also see the cash going down as you spend it and so are more aware of when it’s running out.
✅ Money envelopes
You can use any envelopes you like to budget using this method. There are whole host of printable envelopes available to download if you’d prefer.
You could also look at ‘envelope’ purses like this one, they’ll last longer and you’ll have all your envelopes kept together in one place.
Our post here will help you to budget, and there are several easy ways you can make the cash you have each month stretch further than it otherwise would!
Food vouchers from magazines etc…
There are a ton of money off coupons for supermarkets. The aim of my cash budgeting envelopes is really to make our money last the month but also I have another ‘secret’ thing I like to do. I like to see how much I can have left over, rather than it all being gone.
One way I do this is with coupons for the supermarket. I’m NOT a total coupon nut (I wish I was!) but if I see them , I cut them out and put them in my envelope. I can save about £20 a month doing this.
A good place to look for coupons:
Also keep your eyes open in magazines and newspapers. These coupons are everywhere.
Keep some scissors in your bag and grab the coupons wherever you see them!
Save money on entertainment and going out
Restaurant vouchers are a must for us if we’re eating out.
I use Tesco vouchers if we have enough, and if not I go here and see what’s available.
If you study, it’s well worth signing up for UniDays as there are LOADS of vouchers on there for all sorts of places, including restaurants.
So essentially, that’s it. It’s really pretty simple and I find it FAR easier to stick to than using a bank card or a budgeting app. I’d love to hear your experiences of using the cash system…let me know below!
The cash envelope system works bu allowing you to set aside an amount of cash each week and only spending what’s in the envelope. Once the cash is gone, you have to wait until top up day!
You can start the cash envelope system as soon as you next get paid. Start to work out your budget and have the envelopes in place ready to go and as soon as payday comes, fill up your envelopes!
Any leftover money in your envelopes you can out into your savings account.