USING THE CASH ENVELOPE SYSTEM

What exactly is the cash envelope system and how the heck does it work?

The cash envelope system was made famous by Dave Ramsey. If you’re following him or have read his book The Total Money Makeover (highly recommended) then you’ve at least heard of the envelope system and that’s probably what brought you to this blog post.

Related: Dave Ramsey’s 7 Baby Steps Explained

The cash envelope system is a simple system where you use cash instead of a debit or credit card (I go into greater detail below).

While it’s pretty simple, it does take some time to get used to especially if you don’t usually use cash or tend to just swipe all your purchases.

If carrying cash just scares the heck out of you then you can switch to a cashless envelope system (I talk about how to do that here). But before you do that try this system first! Using actual physical cash in hand has an emotional effect on your spending versus just swiping a card.

How to Use the Cash Envelope System

1. CREATE A BUDGET

In order to start using the cash envelope system, you have to have first created a budget. You need to know how much money to designate to each envelope and a budget is how you do that.

If you need help creating your budget check out how to create an effective budget.

Once you’ve created your budget, identify which categories in your budget will be tracked using cash envelopes and determine your cash amounts.

In order for the cash envelope system to work you need to know how much money you have to spend after all your bills are paid.

Whatever money is left will get divided up into different envelope categories.

Here are a few examples of cash envelope categories:

• Groceries
• Eating Out
• Gifts
• Kids
• Entertainment
• Giving
• Clothing

Everyone’s categories will be different but those are a few common cash envelope categories I see.

2. DECIDE WHAT ENVELOPE STYLE WORKS FOR YOU

Second, you’ll need envelopes! Makes sense right?

You can start with just plain blank white envelopes or use the free cash envelope printables in the freebie library.

If you have a little money in the budget you can grab my premium cash envelope printables ( just $4) or purchase some ready-made cash envelopes or cash envelope wallets from Amazon.

Use what works for you! If you’re someone who likes pretty things then get a pretty cash envelope wallet or pretty envelopes. If not then use plain envelopes or even a small accordion file to divide your cash.

2. GET THE CASH & FILL YOUR ENVELOPES

Now that you’ve determined your categories, set your budget, and have your envelope system ready you can now start filling your envelopes.

Cash the portion of your paycheck that will go into your envelopes. If you get direct deposit then you’ll need to go to the bank or ATM and grab the total amount of cash for that week, month, etc.

Most ATMs now have the option to choose your cash denominations so have your cash amounts ready before you go so you can select your cash denominations while making your withdrawal. You can write them on a piece of paper or in the notes app on your phone.

Or write the breakdown of those denominations on the back of your withdrawal slip if you’re going inside the bank or through a drive-through so that the teller will know what to give you.

Stick the exact amount of cash into the designated envelopes, recording the starting balance on each individual envelope.

3. RECORD YOUR TRANSACTIONS

Now that your envelopes are full you are ready to start. You’ll want to carry the envelopes you need for the day with you and avoid bringing a credit or debit card if you can.

As you take money out of each envelope you’ll need to write it down on the envelope or a cash tracker slip just as you would with a checkbook register (remember those?).

Whenever cash enters or leaves each envelope, record the amount you spent and the new balance so you know how much you have left for that week or month.

4. STICK TO YOUR BUDGET

If you run out of money in any one category and your envelope is empty that means you can’t spend any more money in that category!

When first starting out you can “borrow” from other envelopes but just know that this is a signal that you may need to adjust your budget or your spending.

Be sure to record any money you took out of another envelope and record the new amounts.

BUT you want to avoid having to “borrow” from any other envelopes too often and adjust your budget and spending as needed during your next budget review.

5. ALLOCATE ANY LEFTOVER CASH

If you have cash left over at the end of the week or month then you are doing great!

Any leftover cash should be allocated towards debt first and then towards savings. If you haven’t already built up an emergency fund then put any extra cash towards your first $1000 emergency fund then start tackling your debt.

Related: How to Pay off Debt When You’re Broke

If you find you always have extra in certain categories then reallocate that money to any categories you may be going over in or start directing it right at paying off your debt or building your savings and reduce that category amount for the future.

WHAT TO DO IF THE CASH ENVELOPE SYSTEM ISN’T WORKING FOR YOU

First, determine why it isn’t working for you. Are you not budgeting correctly? Remember to check out how to create an effective budget.

Are you losing cash or just feel nervous about having cash on you? Do you constantly forget your cash envelopes at home? If this is the case and you’ve actually tried the system for 3-6 months and it still isn’t working then I suggest trying a cashless envelope system.

To learn about cashless envelope systems, check out: How to Use the Cash Envelope System Without Cash.

The whole point of the envelope system is to use it to get control of your money instead of your money controlling you. So whether you end up using the cash envelope system as is or switch to a cashless envelope system, the concept will be the same.

Also, keep in mind that it will take time to adjust to the cash envelope system so don’t be too hard on yourself and give up. You can do it!

Keep going and you will soon see why it works so well for so many people.

Questions? Comments? Leave them below!

This post may contain affiliate links. Read my disclosure policy here

THE BEST LIFE PLANNERS

I love life planners because of the fact that they keep you on track and accountable for life’s everyday tasks, goals, and more.

The simple act of writing down goals, daily tasks and appointments takes the burden out from your brain and puts it on paper.

But which life planner should you choose? What are the best life planners out there?

Here is my list of favorites for all different budgets.

The Living Well Planner (My Favorite)

The Living Well Planner is my favorite life planner. It has all the pages I need and some extra and it’s such high quality.

The Living Well Planner is designed to help you take control of your schedule, get a handle on your finances, plan your meals, and crush your goals, all in the same place.

It has pages to help with it all!

I purchased the floral design life planner and it was just so pretty I didn’t want to write on it but of course, I had too.

TIP: Use erasable pens with your planner! Erasable pens made all the difference for me in using a planner. I use the PILOT FriXion Pens.

I love the motivational words throughout the Living Well Planner and the beautiful design of each page.

Right now there are three designs available for order. Floral, Multicolor, or Navy Edition. All hardcover designs which make it very durable.

If you want to check out the Living Well Life Planner and even flip through it in 3D to see exactly what you’re getting then check it out in The Living Well Shop here.

The Erin Condren Life Planner

Erin Condren has been popular for a while in the planning community. The life planner has monthly, weekly and yearly spreads including 12 tabbed calendars, mini months, and yearly overview to keep you organized throughout the year.

Most of the planners include sticker sheets; coloring sheets, dot grid and notes pages; monthly quotes, perpetual calendar, snap-in bookmark, compliment cards and more. Just make sure to read through the description to see what’s included.

The Erin Condren Planner comes in multiple designs as well and some of the designs are different prices so look at each one.

You can check out the different designs and all the features of the Erin Condren planners here.

The Happy Planner

The Happy Planner is a fun option as well and probably one of the more affordable options.

The Happy Planner is a 12-month, undated classic planner; with 4 sheets of stickers that will help you add dates to your planner and tabs; 2 magnetic bookmarks; and 4 sticky note pads.

This planner comes in a bunch of different designs and themes. For example, fitness, life, cooking, etc.

You can check out The Happy Planner and all the details here.

The Panda Planner

I came across the Panda Planner when I was looking for life planners that weren’t coil bound. I was intrigued by the founders’ story and also the sophisticated design of the planner.

There are a variety of different designs and styles. They have Classic, Pro, and Specialty.

Each has its own features. The planners come with daily, weekly, and monthly pages.

Check out all of the Panda Planner’s designs and features here.

The Passion Planner

The Passion Planner is made with faux leather and comes in different designs as well.

It includes sections to schedule appointments and deadlines, work and personal to-do lists to maintain a work/life balance, a place to jot down the good things that happened, a blank space for notes and doodles, and monthly check-ins to reflect on the past, present, and future.

What I like about this planner is that when you purchase the Passion Planner you also get access to FREE downloadable PDFs and inserts on the Passion Planner official website. Find FULL year PDFs, finance trackers, habit trackers, and more.

You can check out all the Passion Planner has to offer here.

Like this list? Share it with friends and PIN IT for later! Have another favorite life planner not listed? Share it in the comments below!

This post may contain affiliate links. Read my disclosure policy here

BLACK FRIDAY BONUS FREEBIES

Black Friday 2019 is this Thursday, November 28th (you can check out the new ads here), and some retailers are giving away more than just discounts.

If you’re planning on shopping in-store then be sure to check out RetailMeNot’s list below of retailers who are giving away freebies in addition to the sales.

After all, if you’re willing to wait in line and deal with the crowds you might as well get some extras.

Check the list and plan your shopping so you can possibly score some extra freebies and prizes.

If instead you’re doing any online shopping (like me) make sure you download the Retailmenot Chrome extension and save yourself some money! Grab it here.

Now let’s get to the list……………………………

STORES THAT HAVE EXTRA FREEBIES ON BLACK FRIDAY

Belk

Starting at 4 p.m. on Thanksgiving, Belk is giving away a total of $1 million dollars in gift cards. To get more specific, Belk will be giving away a $1,000 gift card in each of its stores. 

Starting at 6 a.m. on Friday, the retailer will be doing an in-store mystery scratch-off giveaway—you could scratch off up to $500. They promise one winner per store each day!

Check out Belk’s Black Friday Ad below:

Cabela’s

Be one of the first 600 in line by 5 a.m. Friday, November 24, for a chance to enter to win over $8,000 in prizes.

Fred Meyer

The first 100 customers receive a free gift card. Free coffee, juice, and donuts are also available. Doors open at 5 a.m. on Black Friday.

You can see Fred Meyer’s Black Friday ad below.

Half Price Books

The first 100 book lovers through the door on Black Friday get a free tote bag and a $5 gift card. One tote bag will have a $100 gift card!

Plus, every day from December 1 through December 14 they will give away a $100 gift card. Enter each day for a chance to win.

JCPenney

Show up in-store early (doors open at 2 p.m.) on Thursday, November 28, and you could be entered in a coupon giveaway consisting of a $500 off $500 coupon, $100 off $100 coupon and $10 off $10 coupon.

Check out JCPenny’s Black Friday Ad below.

Macy’s

Macy’s is promoting free in-store doorbusters after mail-in rebate. You can grab pearl earrings, pillows, a coffee maker, slow cookers, glassware sets and more under this offer.

NOTE: You have to be at the store by a certain time to get these deals so check the ad and hours in your area.

You can see Macy’s free after rebate deals in the ad below.

Mills Fleet Farm

This one is a bit different–Mills Fleet farm is kicking off Black Friday on Saturday, October 14. The first 150 customers in line at 6 a.m. will get a Melissa & Doug 32-pc. Farm Friends Floor Puzzle.

Shopko

The first 100 customers on Thanksgiving afternoon get two bonus cards. One is valued at $10 and good only on Saturday, November 24. The other is for $15, and both are only valid on home and clothing purchases.

Stage Stores 

The first 75 people in line at 1 p.m. on Thursday will be entered to win a 4-foot FAO Teddy bear. Plus, you’ll get a scratch-off card showing prizes, such as a $250 gift card, $200 gift card or a $10 coupon that’s valid even on doorbusters.

On Friday, the first 50 guests in-store get a free holiday tote and a scratch-off card showing prizes from $10 to $100 valid on doorbusters.

Ulta

If you spend at least $60 on Black Friday you can score a free gift with your purchase. Because you can never have enough beauty products.

Walmart

Show up early on Thursday by 4 p.m. to get free coffee (brought to you by Keurig), hot cocoa and snacks.

You can see Walmart’s Black Friday Ad below.

World Market

The first 100 customers in-store on Friday, Saturday and Sunday get a $10 gift certificate and a free tote bag.

Check out all the Black Friday ads here for more Black Friday Deals and don’t forget to grab your free gift planner printable!

This post may contain affiliate links. Read my disclosure policy here

SAVE MONEY ON GIFTS ALL YEAR ROUND!

If you’re on a tight budget, gift-giving can get costly especially around the holidays but even throughout the year.

So what are some ways you can save money on your gift-giving? Read on for some tips and a cool free printable just for you!

SET A HOLIDAY BUDGET & PLAN

This one is probably the most important tip!

If you procrastinate and don’t budget and plan for gifts then you’ll end up spending money from other areas of your budget to buy gifts.

Do you need help to create a monthly budget? Check out my article on How to Create an Effective Budget.

You’ll miss out on sales and may end up buying gifts that have no thought to them. You could also forget some gifts (how embarrassing would that be).

You should get into the practice of planning out who you need to get gifts for, how much you have to spend on each gift and brainstorm some gift ideas for each person.

For example, what are they into? Sports? Collectables? Books? Write these down so when you come across the perfect gift you can grab it.

It’s never to early to start planning your gift-giving. It’s actually beneficial to start in January so you can budget money each month towards gifts.

You can grab a piece of paper or use a printable gift planner, like the one pictured below, for this.

You can get it here (it’s free!).

Already a subscriber to the blog? Just download the gift planner along with other freebies from the Freebie Library (password is in your email)!

A planner is also a great place to make notes on your family and friends’ interests. This will ensure your gifts are well received and thoughtful.

SHOP THROUGHOUT THE YEAR FOR GIFTS

By budgeting and planning all year long, you’re able to shop when there are deals or when you see something special throughout the year.

After holiday clearances and even seasonal clearances are great times to shop for gifts.

I shop for wrapping paper and gift bags each year after the holidays and save 75-90% this way.

Just be sure to make notes on what you bought and what you spent in your planner.

Also, have an area in your home to keep your gifts and supplies until its time to give them. If you have the room designate a portion of a closet as a gift closet so you always know where to put your gifts and gift supplies.

There’s nothing worse than knowing you bought a gift for someone last month but aren’t sure where it is and have to buy a new one (speaking from experience).

DIY YOUR GIFTS

Gift baskets are popular but can also be very expensive if you buy them premade. Plus you don’t usually get to customize them exactly how you want them.

Making cute gift baskets is one of my favorite ways to not only personalize a gift but also save a ton of money.

Dollar Tree is great for this especially for their gift bags, baskets, and tins as well as fillers for your baskets.

Below are a few examples of gift baskets you can create for around $15.

On a tighter budget? Create these cute gifts for under $6! I love this idea for teachers’ gifts as well as friend gifts.

Did you know you can order all you need at Dollar Tree online? Yup! Check out their selection here.

SET A GIFT AMOUNT

This ties into the budget and planning section but what I mean here is to set a gift amount for people whom you usually swap gifts with each year.

Agreeing on a gift amount that works for both people will eliminate worrying that you’re not spending enough on them or that they may spend too much on you.

If your buying for children you can just give yourself a limit or if you have kids as well you can plan with the other parents to set a gift amount for each kid or buy a family gift the whole family can enjoy.

DO YANKEE SWAP OR SECRET SANTA GIFTS

Yankee Swap and Secret Santa games are very popular. If you aren’t familiar with them you basically get a group of people together and each person only buys one gift.

In Secret Santa, everyone participating is randomly assigned a person to whom they will buy a gift.

The identity of the gift giver is to remain a secret and should not be revealed.

In Yankee Swap, each participant brings a wrapped, unmarked gift. Everyone picks a number out of a hat, and they select and unwrap gifts from the pile in that order — with a twist.

The person who got the number 1 gets to trade their gift with any of the other gifts or keep it. Everyone else has to keep the one they picked.

These and other various formations of gift games are popping up all over so you’re sure to find a fun one your family and friends will enjoy.

These gift games are a great way to save money. Rather than buy for ten people you will only be buying for one. Plus they save you time by not having to pick out ten gifts (definitely a win for everyone).

USE CASHBACK APPS

If you aren’t using a cashback app then you’re missing out on free money! Cashback apps are not only for shopping online anymore but can be used in-store as well.

Some of my favorite apps are:

• DOSH
• Rakuten (read my Rakuten review)
• Ibotta (read my Ibotta tips here)
• Shopkick

I recommend signing up for all four to save the most amount of money because they all work a little differently and one may have a better cashback deal on the item you are shopping for at any given time.

Plus you may be able to double-dip on the savings in certain circumstances!

Did these tips help you? What are some of your favorite ways to save money on gifts? Share your tips below in the comments I love hearing from you!

This post may contain affiliate links. Read my disclosure policy here