Same thing for catching a sporting event.
#Cash envelope categories list plus#
Short-Term Financial Goals: Plus 29 Ideas to Start.Crushing Your Long-Term Financial Goals.This is where it’s valuable to pull out cash for the event and attend worry-free. If all your good friends are going out for a friend’s birthday celebration, you should be able to go.Įven if you haven’t met all your financial goals (which never end by the way), attending events like this are important. I’m not suggesting someone who makes $40,000 per year spend three thousand dollars a month on entertainment, but some money should be allocated to this area.Ī ballgame, night at the theatre, dinner with friends, etc. This is why I like to leave some room in the budget for entertainment. I’m more about sustainability and making long-term positive money choices. To me, this is the equivalent of a crash diet. I’ve heard a large number of personal finance experts advising to cut almost everything. would make things way too cumbersome and time consuming. It might be tempting to create multiple categories here, but resist the temptation.Īdding separate categories such as snacks, dinners, dental, skincare, etc. To keep things simple, all of these items fall under the same umbrella. Household items include paper towels, aluminum foil, trash bags, shampoo, soap, etc.
Any type of food would or household items qualify. That includes grocery stores, warehouse stores, farmer’s markets, etc. Now on to the seven cash envelope categories that will keep things as simple as possible yet still cover the monthly expenses.įirst on the list of envelope budgeting cash envelope categories is groceries and household items. That cuts it down from five categories (accounting for each of the five pets) to just one umbrella “pet” category. That covers all the pets, eliminating the need to create a category for each individual pet. For example, if someone has two dogs, a cat, a turtle, and a fish I would create a pet category. I create what I refer to as “umbrella categories”, meaning they are more broad than ultra-specific. I try to make things as simple as possible though, and that means less categories.
It’s possible to literally make dozens of cash envelope categories. For others, the structure and systemization that envelopes provide is worth the inconveniences.Įnvelope Budgeting: Seven Cash Envelope Categories and Sub-Categories Less opportunities to take advantage of big salesįor some, the drawbacks to envelope budgeting are high enough where it doesn’t make the process worth it.Can’t use cash to pay for things online.It takes time to get the cash out, stuff the envelopes, and pull the money out to spend. While envelope budgeting is highly intentional and works for many people, it’s also inconvenient. The biggest drawback to envelope budgeting using cash envelope categories is convenience. Of course there are other benefits to this system, these are just some of the most notable. For those in credit card debt: not adding more money to the debt.Forces you to think twice about spending.Harder to go over budget because you see the cash diminishing.That in of itself makes envelope budgeting worthwhile. First off, it’s psychologically more difficult to spend cash than swipe or scan a credit card. There are positives and negatives to envelope budgeting. If you had a budget of $400 for car/transportation costs, you would put $400 into an envelope and use it for gas, public transportation tickets, etc. So if you have a grocery budget of $1,200 per month, you would put $1,200 into the envelope at the start of the month. Money is literally put into an envelope to be used for that category each month. For example, categories can include groceries, entertainment, car/transportation, etc. What is Envelope Budgeting Using Cash Envelope Categories?Įnvelope budgeting using cash envelope categories is setting aside money every month for different areas of your life. This type of budgeting was popularized by Dave Ramsey and will help keep anyone on a strict budget. One way is using cash envelope budgeting categories. There are lots of different ways to budget.
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