A Modern Guide to the Cash Envelope Budgeting System

February 6, 2026

The cash envelope system is a simple, hands-on way to manage your money. You divide your cash for the month into different envelopes, each one labeled for a specific spending category like “Groceries” or “Gas.” Once the cash in an envelope is gone, you’re done spending in that category until next month. It’s a beautifully simple system that creates a real, physical connection to your spending and makes it almost impossible to overspend. ...