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Envelope System: The Beauty of Budgeting

Envelope System: The Beauty of Budgeting

Envelope System

How many people around the globe strive for everyday living? This is one of the few questions that you might ask in terms of the financial burden that many people have. Many people still live their lives from paycheck to paycheck, wondering how they can budget their finances efficiently.

The Reason Why

Many types of tools and apps offer a different approach to budgeting. That might work for some, but with others who are not fond of using apps and tools, it might seem overwhelming. That is why we need a system that is pretty simple and easy to fit our lives in the long run. Many people might know this but there are also lots of people who are not yet familiar with this technique.

calculator coins - budget
Photo Credit: Pexels


Digging into budgeting has something to do with your “Big Why”, why do you do this in the first place for this will be tough at first. Because everything you start is hard when you don’t even have a reason for it. May it be saving for your dream house, vacation, car, etc. or for keeping you out of debt. Whatever it is, know why you want to start for this will be able you to strive as you go along your budgeting journey, or else it will all be all nonsense in the end.

The Simple Approach

The “Envelope System” or widely known as “Cash Envelopes” is a budgeting system that is popularized by a finance guru and radio talk show host Mr. Dave Ramsey. Maybe some of you have already heard this from their parents or grandmas but didn’t do this before. The good thing now is there are lots of resources on the internet that has to do with this type of budgeting and how can you make the most out of it.

envelope - budget
Photo Credit: Pexels

This cash envelope system is very easy to follow and to implement. Wherein you just have to know your monthly budget for a certain category, for example, food, groceries, bills, travel, savings, etc. and tuck it off inside each envelope of a certain category. With this system, you can keep track of your expenses every time you purchased something by keeping a running total of each categorized envelope. By doing this, you are making a conscious decision of how you use your money and how much do you still have left for a certain category allotted by your budget.

Beauty of Budgeting

The beauty of this budgeting technique is the simplicity, awareness, and accountability that it contributes to your financial status. You are aware of how much money you have left and restrict you to overspend the certain amount that you allotted your budget. Once you set your budget and tucked it into the envelope make sure that you only spend the money that is only inside the envelope no matter what. Resist any temptation on spending things that you don’t need.

dollar bill - budget
Photo Credit: Pexels

Give it a try for 3 months and when you feel the need to adjust your budget to fit your lifestyle, just be it, but make sure that you’re still being frugal and living below your means.
Go for it and give it a try, as long as you stick to the rules, it’s a great way to track your spending and budget your money for your financial stability.

Source: Dave Ramsey

This was originally published on Pinas Balita. Editors may have changed or added to this article for JUANderful Life‘s audience.


I am the lifestyle page of digital Filipino platform Pinas Balita.

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