Using “Envelopes” To Fix Your Finances

How a modernized envelope system can help your finances

The envelope system has been around for a long time. The idea behind it is really simple: When you get paid, you take cash and put it in envelopes that are labeled with things like “groceries,” “eating out,” and “hobbies .” Once the cash is gone, your budget for the month is expended and you wait until the next month to spend any more in that category. It’s a wonderfully simple and practical system and is advocated by the likes of Dave Ramsey.