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Free, step-by-step tutorials on managing money. They work with cash and envelopes, or with Smarter Budget.

The envelope method

Nine short steps, from listing what you have to habits that last. Each one ends with one thing to do.

  1. Start hereIntroduction to the envelope methodWhere does the money go each month? The envelope method gives every amount a job before you spend it.
  2. Step 1List your accounts and balancesWrite down every place your money sits, with its balance. It's the first step to controlling it.
  3. Step 2How envelopes workAn envelope is a pot of money with a job. Here are the three kinds, and when to use each one.
  4. Step 3Set up your essential envelopesYour must-pay envelopes come first. Find them with one question: what would you still have to pay if you lost your job tomorrow?
  5. Step 4Manage your subscriptionsList every subscription, monthly and yearly, and see exactly what they cost you.
  6. Step 5Build your safety netA safety net is money set aside for when something goes wrong. Build it straight after your must-pays.
  7. Step 6Fill your envelopesGive every amount a job, in the right order: must-pays first, then your safety net, then everything else.
  8. Step 7Managing unexpected eventsWhen an envelope runs out, move money from another envelope to cover it. Always.
  9. Step 8Reconcile your accountsCheck that each account in your budget matches the bank, every few days. It keeps your whole budget honest.
  10. Step 9Better habitsSeven small habits that keep your budget working for years.

General information only, not financial advice. Think about your own situation, and talk to a qualified professional before big financial decisions.