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Printable Cash Envelope
Many people will agree that one of the most challenging parts of being an adult is budgeting your money in a responsible way. It seems like the modern world of debit and credit card spending makes it all too easy to lose track of spending until it’s too late.
Constructing and sticking to a budget requires a lot of hard work! You need organization, determination, self-control, and follow-through to make a new financial system stick. It doesn’t have to be challenging, though. In fact, there’s a system that makes it downright easy. We’re talking, of course, about the cash envelope system.
In this article, we’ll walk you through how to use the system, why it can work for you, and we’ll also set you up with some beautiful, free printable cash envelopes by giving you access to our printable downloadable cash envelope template!
The Cash Envelope Explained
What Is the Cash Envelope System?
The cash envelope system is an ingenious method of tracking and controlling your spending. The idea is based on old-school methods of keeping track of your finances, but don’t let the lack of modern technology fool you… this method really works.
In short, the cash envelope system is a way of dividing your money into sub-categories for spending. In order to do it correctly, however, you need to hold your money in cash, rather than in a bank account. From there, you would divvy it up proportionately into your various groups.
For example, if your monthly expenses include rent, food, gas, and pocket change, you would have an envelope for each of those categories. You may also want to keep one or two extra envelopes to add cash to for things like emergencies and savings, but you can also choose to store that money in a bank account (as long as you don’t spend it accidentally!).
Once you have your money divided into each envelope, you use the system like a category-specific ATM machine. If you need to pay your rent, you simply take the amount out of your “rent” envelope. If you need to get gas, that money has to come out of your gas envelope.
In order for the system to work well, you really need to be strict with yourself about only taking funds out of the correct envelope. If you use all of your gas money for the month but find you need to fill your tank up again, you have a decision to make. You can either forgo spending any more money on gas (and find another way to get around), or you can take some money from another envelope. If you choose this path, however, you do so with the knowledge that your funds in that envelope are now more limited.
Printable Cash Envelope
Free Printable Cash Envelope Downloads
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How Cash Stuffing Can Help
Let’s look at how “Cash Stuffing” or “Envelope Budgeting” can help you get your budget back on track.
Why Is the Cash Envelope System Effective?
This system may not work for everyone, but many people who are trying to stick to a budget absolutely swear by it. It’s not a magic system, but it is pretty close. Here’s why you may want to try the cash envelope system for yourself:
1. You’ll Quickly Become Aware of Spending Habits
With the cash envelope system, you’ll quickly become aware of exactly where your money goes every month. This is a great way to understand how you’re spending your money— consciously or not. Many people are quite surprised when they see just how much of their money is going into daily coffee purchases. The little stuff adds up fast, and a lot of times we aren’t aware of just how much we’re spending on small purchases.
Be warned, though. The first few months can be a tough adjustment. If you give yourself 300 dollars to spend on food and drinks and you also buy a 6 dollar coffee every day (adding up to $180 per month), that leaves you with only $120 to spend on your groceries for the whole month! Suddenly your envelope will be empty and you’ll have to confront some tough realities about the way you’re handling your money.
2. You Can Make Sure You Have Enough for the Essentials
Another great thing about the cash envelope system is that it helps you make sure you’ll have enough for all of your necessary bills. At the beginning of each month, you’ll sit down with your envelopes and divide up your funds into their respective envelopes. From the get-go, you’ll know that you have enough for rent, gas, and food, and then you can use the rest for pocket change or other necessities.
This is a great system if you’ve been struggling to make ends meet each month. Instead of spending as you go and trying to dig yourself out of a hole, you rely on self-discipline and planning to ensure you have what you need.
By setting aside the exact amount you need for all of your vital expenses, you essentially leave yourself with a more limited— and more realistic— amount of money to spend on all of the goodies and extras you want to enjoy. There’s absolutely nothing wrong with treating yourself to the things you love… unless doing so prevents you from paying your grownup bills.
3. It Can Help You See the Bigger Picture
Getting into the habit of creating a detailed monthly budget can really help you gain a clearer picture of your financial situation. Not only will it help you see how much you spend month-to-month, but it will also help you understand your overall spending habits in a long-term sense.
Being able to understand how much you spend in a whole year on any given group is a really valuable piece of insight. It can help you begin to plan for the future and can give you realistic expectations for yourself and your finances.
One of the best parts about the cash envelope system is the tracking aspect where you write down amounts you plan to spend and actually spend for each category. At the end of the year, look back and add it all up. You’ll be amazed at where your money goes!
4. You Can Finally Start Saving
A lot of people who adopt the cash envelope method have been struggling for a long time to start saving. We hear a lot of people complain that whenever they feel like they’re making progress with their finances, something unexpected pops up and they have to dip into their savings and start from scratch again.
One of the biggest culprits with this type of spending is that the flow of cash is virtually invisible. Your debit and credit card only pull money from one big pool of cash, so even if you try to limit your spending in certain areas you can easily slip up and spend too much on eating out or trips to the movies.
Setting up a “savings” envelope will help you start adding a little bit of money each month. An important thing to remember about saving is that you should do it however you can, but it’s often best to build up your savings slowly over time. Consistency is key here, and even adding 10 dollars a month will give you something small to work with. A good rule of thumb, however, is if you’re truly serious about saving you should be allocating about 20% of your monthly paycheck to your savings.
Another tip: if your life is a bit inconsistent at the moment and you want to save but may need extra cash now and then, you can cheat the system by having a second savings envelope called “emergency fund.” Adding a little bit to both of these will help you save your money long-term and it will allow you to have a little bit of cushion to fall back on when you need to — without disrupting your savings!
Related content: How to save money
5. It’s Great for Helping Kids Learn to Budget
The cash envelope system is awesome for adults on a budget, but it’s also a fun and effective way to help kids understand budgeting and develop smart spending habits from a young age. The concepts are so simple that it helps them understand that everything has a limit and that it’s possible to spend too much on something, even when you really want it.
Additionally, it can help kids start thinking about what’s important to them. Do they want to put money in one envelope to save up for the computer game, or do they want to spend it now on ice cream? The envelope system is a good way to frame money-based decisions for kids, and can really help them see the difference between instant gratification and long-term payoffs.
Kids learn their spending habits from their parents, so it’s good for you to not only set an example with your handling of money but also equip your kids with the resources to do so themselves!
Free Cash Envelope Printable Template
Ok, we know you’re excited to start your new budgeting journey with the cash envelope system, but you’re probably wondering “where the heck am I gonna get all these envelopes??” Yet again, my friend, we have got you covered!
Our free printable downloadable cash envelope tracker is here to help. We designed these beautiful envelopes just for you, and we know you’re gonna love them. Our cash envelope printable consists of four beautiful and colorful tropical palm designs. Be sure to download our free printable cash envelope tracker printables to help you keep track of your spending!
Downloading and using the designs is simple and easy, too! All you need is a printer with ink and paper, scissors, and an adhesive of your choice. Here are some step-by-step instructions on how to construct your envelopes from our free printable cash envelope system.
Printable Cash Envelopes
Free Printable Cash Envelope Downloads
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1. Download the File
The first step is to download the file onto your computer. Just click the link and you’re good to go.
Alternatively, if you don’t want to download the file to your computer, you may be able to open it in another browser tab instead. Although downloading is the best choice if you think you’re going to want to print more in the future!
2. Open the File
Next, you’re going to want to open the file on your computer using your computer’s image viewing software. Each design should be on its own page, and you want to make sure not to resize them!
3. Print the File
Once you have the file open you’re going to open the print menu and begin printing your beautiful cash envelopes. Be sure that your printer is stocked with your preferred paper (regular computer paper is just fine, but you can get fancy and use sturdier paper as well). You’ll also want to make sure your printer has enough color ink.
4. Cut the Envelopes Out
After your envelopes have been printed and had time to dry (don’t let that ink smudge!), it’s time to cut your envelopes out so you can construct them. To do this, simply cut along the outline of the envelope, making sure not to cut off any of the printed areas. If you’re nervous about messing up, you can always cut so there’s a little extra room around the edge and then go back in later and clean it up.
5. Assemble Your Envelopes
Once you’ve got all of your envelopes cut out, it’s time to begin assembling them! To do this, simply fold them at the tabs and then glue them together, and voila! You’ve got your envelopes!
6. Start Saving
Now that you’ve got your beautiful, free printable downloaded cash envelopes it’s time to start saving! Once you’ve got your goodies you can begin separating money by category and writing down all of your spending! Good luck — we know you can do it!
Free Printable Cash Envelope Tracker
Free Printable Cash Envelope Downloads
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