How do you get started with a cash envelope wallet?

Do you often find yourself at the end of the month wondering, "Where did all my money go?" Don't worry, you're not alone. A cash envelope wallet can help you get a better handle on your spending.

What is a cash envelope wallet?

Simply put, a cash envelope wallet is a method where you divide your cash into several envelopes, each designated for a specific spending category. The idea is that you reserve a certain amount for each category. Once it's gone, it's gone, so you never spend more than you planned. This system helps you manage your money more consciously and reduce impulse buys.

Why choose the cash envelope system?

In an era where digital payments are the norm, working with cash might seem outdated. However, the cash envelope system offers several advantages:

• Spending Awareness: By using physical money, you literally see your money disappear, making you more aware of your spending.
• Limiting Impulse Buying: Once the money in a particular envelope runs out, you can't spend any more on that category, which helps prevent impulse buys.
• Better budgeting: The system forces you to think about your expenses in advance and set priorities.

Step 1: Determine your budget categories

The first step is to identify the expense categories that are relevant to your life. These can be fixed expenses, but also variable expenses. Here are some examples:

• Groceries: Money for daily groceries and household items.
• Eating Out: Budget for restaurants, cafes and takeaway meals.
• Free Time: Money for entertainment such as cinema visits, concerts or hobbies.
• Clothing: Budget for new clothes and accessories.
• Transportation: Costs for public transportation, fuel or maintenance of your vehicle.
• Gifts: Money set aside for birthdays, holidays, or other occasions.
• Savings: An envelope for savings goals, such as a vacation or emergency fund.

Keep it simple and start with 3 to 5 categories that are most relevant to you. As you gain experience, you can add or modify more categories.

Step 2: Determine the budget per category

Now that you've established your categories, it's time to determine how much money you want to allocate to each category. Here's how:

• Analyze your income: Calculate your total monthly income after taxes.
• Fixed Costs Overview: Make a list of your fixed monthly expenses, such as rent/mortgage, utilities, and insurance.
• Determine your available budget: Subtract your fixed costs from your income to see how much you have left for variable expenses.
• Divide the money among the categories: Based on your spending habits and priorities, allocate amounts to each envelope. Be realistic and give yourself some leeway to avoid frustration.

It can be helpful to review your spending over the past few months to get a sense of your spending pattern. If you find yourself regularly spending more than you'd like in a particular category, consider reducing your budget for that category and allocating the difference to a savings goal.

Step 3: Choose the right cash envelope wallet

A good cash envelope wallet helps you stay organized and makes budgeting more enjoyable. Vaye Amsterdam offers a range of stylish and functional options to help you with your budgeting. Here are some recommendations:

• A7 Binder: This compact and elegant binder features a ring binder for cash envelopes, space for change, and space for cards. Ideal for everyday use. View the collection here.

• Cash envelope wallet : This is used as a wallet and comes with tabs so that you can keep the categories distinct.
  

• Personalized Cash Envelopes: Complete your cash envelopes with a personalized dashboard. At Vaye Amsterdam, you can create a unique design that suits your style. View the options here: Personalize Cash Envelope

Step 4: Withdraw cash and fill your envelopes

📅 Schedule fixed times to withdraw money, for example immediately after your salary.
💰 Divide it into small denominations so you can pay easily.
📌 Store your envelopes safely , but in an accessible place.

Step 5: Use your cash and learn from it

• Only use money from the correct envelope – This prevents you from being tempted to take money from other categories.
• While supplies last! – Run out of money for dining out? Then wait until next month.
• What if you have money left over? – Set it aside for a savings goal or carry it over to next month.

Tip: Record your expenses in a small budget planner . This will help you gain insight into your spending and better budget allocation for the following month.

Conclusion: Get started and save more money!

You're ready! With a good system and the right tools, you can gain more control over your money.

✔ Start with a small number of categories .
✔ Use a cash envelope wallet from Vaye Amsterdam .
✔ Learn from your expenses and adjust your budget where necessary.

Ready to get started? Check out Vaye Amsterdam's cash envelope wallets and start budgeting today!