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Cash Envelope Template
The simplest way to save money is not to spend it, of course. However, that is not really an option when you need food, clothes and shelter. You must manage your money well.
A cash envelope budget is what it sounds like. Rather than using plastic to shop, you get cash and place the budgeted amounts into envelopes. For example, if your budget for food is $200 a paycheck, then you get cash and place $200 in an envelope earmarked for groceries.
When you grocery shop, you use only the cash in the envelope. That is all you have available to spend. It is impossible to overspend. If there is only $20 left, then that means you can't spend $22. There is not enough money there.
It is a system that works very well for people who want to better manage and control spending.
Most people use a debit or credit card to buy just about everything they need. But, if you are trying to get better control of your money or get out of debt, a cash budget may be the answer.
A cash budget works because you can never overspend. It is impossible. If you have $100 to spend at the store, you can not buy $105 worth of items. But, if you use plastic - you can!
One of the first steps to take in getting control of your money and reducing your spending is to manage it well through a cash budget. The secret to using it well, however, is to track every penny you spend. This is done by using cash envelopes.
When you get paid, get the cash you need for each budget category and place it in your envelope. Every time you shop, you will need to check how much money you have left and once the money is gone, you are done spending. By tracking and using cash, you become much more aware of how and where you spend your money.
These templates help you determine the categories to use and include space to track your spending. Download them once and you can use them again and again.
To get even more information on how to set up and use a cash budget, check out this article - Creating and Using the Cash Envelope Budget.