When you're using a budget, you will find some categories easier to stick to than others. For example, your rent or gym membership doesn't fluctuate, but your clothing, weekend activities and vehicle maintenance can, which can be hard to predict and prepare for.
The cash envelope system helps you to stick to your budget, by allowing you to put aside money every pay day for these categories.
In my budget I have set up automatic payments or direct debits for every category I possibly can. I then have 5 cash envelopes labelled:
- Car Maintenance
- Spending (on myself for things like beauty, hair, going out)