Guides / Budget methods
The envelope method (cash or digital)
When the envelope is empty, that category is done for the month.
The envelope method puts a set amount into separate envelopes for categories like groceries and fun. It makes overspending visible straight away.
How
- Choose the categories you overspend in, usually groceries, eating out and fun
- Put the monthly amount in an envelope, or a labeled bucket in a banking app
- Spend only from that envelope
- If it runs out early, move money from another envelope on purpose, not by accident
Safety
If you use cash, keep only what you need for the week at home.
General educational information, not financial advice. The Pennies Budget isn't paid by any company mentioned here.