Cash envelopes.

You have never heard of those before? Well, take a seat and let me tell you how these can and will change your money habits.

If you are like me, you probably never have any cash on hand and pay everything by card – whether it is debit or credit. This often times makes me lose track of the money I am spending. More than once I dreaded checking my bank account simply because I had no idea what I had spend and what was left.

But fear not, there is a solution to this problem – and it is way more simple than expected.


I know, this sounds too simple but it has helped us a lot.

So, here is how cash envelopes work:

First of all, take your time to really assess where and how you spend your money. This can be quite annoying, especially when you have to be honest to yourself about all the impulse buys and stupid things you’ve bought just for fun. But, as hard as it might be, be true to yourself. Change can be hard, but it will all be worth it in the end.

Then, write down all your expenses. Separate them into things that have to be debit operations, such as rent, car insurance, etc., and things that can be bought by cash. Take the list and sum up all the expenses that can be paid with cash.

Thirdly, get cute envelopes, I got mine off of Amazon, and label them. My cash labels are Groceries Week #1 – #4, Refuel, Beauty (including nails and hair cuts) and Date Nights.

Withdraw all the cash money you need for the upcoming month and sort it into the respecting envelopes.

Now, when you go shopping or on a date night, ONLY take the respecting envelope with you. Do not take your credit or debit card. This way you will only be able to spend the money you have reserved for this activity. Also, if you happen to not spend all the money you had planned, put the rest away. I have a separate envelope for savings but you could also put it in your bank account. Anyway, do not touch the rest money.

We used this method before I started my internship and it worked wonderfully.

However, do not forget to calculate some money for leisure and fun. If you refrain from buying everything, you will eventually bounce back and spend money on something stupid. So if you want the nail polish you don’t necessarily need, go ahead and buy it. The game your boyfriend has been rambling about for weeks, let him have it. They key is to not go overboard but to be reasonable with your money.

This will take some time but eventually, you will adjust to the changes and saving money will become a lot easier.

Have you ever used cash evenlopes? Or do you use another method to safe money? Let me know!

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