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How to Budget with the Envelope System

Creating a household budget may seem like a simple enough task—but sticking to a budget is definitely no joke. If you’re one of those people who have a hard time keeping within budget, then the envelope system might be just what you need.  Here’s how to budget with the envelope system:

1) Categorize your budget.

The first thing you need to do is budget your paycheck down to the last dime. Figure out how much money you make and how much you spend. Divide your budget into categories you spend on: gas, groceries, dining out, gifts, entertainment, clothing and the like.

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