Are you ready to make the switch to the cash envelope budget system, but aren’t a big fan of carrying all that cash every day?
Well today, we’re going to go through four steps you can adapt the cash envelope system to fit your family. These steps can be adapted to fit your family, any income level and any goal that you have.
Make sure to watch today’s video for more details on each step. You can watch How To Start The Cash Envelope System Without Cash online or down below:
Here’s a quick summary of each step:
STEP ONE: Decide when to make the change
The first step in switching to the using cash envelopes is deciding when to make the shift. Will you do it now? Next payday? Will you wait until the first of the month? In the video I share how you can make the shift at any point. However, you need to make sure that all your bills are paid and taken care of between the change and the next payday. You can use a bill tracker to help you ensure all bills are paid.
STEP TWO: Decide which categories you will use cash for
You don’t have to use cash for every single budget category, but you need to ask yourself two questions before making that decision:
- Do you normally overspend in this area?
- Can the overage be controlled with cash?
If you answer YES to these two then you need to be using cash for that category.
STEP THREE: Choose your tracking system
Tracking your spending is vital in making sure you reach your financial goals. There are multiple ways you can easily track your spending, which I go through in the video. If you aren’t sure why you should be tracking – check out my post that explains why it’s pretty smart to do.
STEP FOUR: How to deal with overspending
Let’s face it – we’re all human and we all make mistakes. But the key is how we bounce back from those mistakes, right? So when it comes to budgeting you need to have a plan or system that gets you back on track when you overspend. When it comes to using cash, it becomes pretty simple – if you don’t have the cash then you can’t spend money. However, in the video I go through multiple tactics to the cash envelope system that you need to understand when overspending occurs.
For more help, check out these posts:
HOW MUCH YOU SHOULD BE SPENDING ON GROCERIES
WHY WE HAVE MULTIPLE BANK ACCOUNTS
WHY YOU SHOULD SETUP AUTO PAY FOR YOUR BILLS
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