The envelope method · Start here
Introduction to the envelope method
Where does the money go each month? The envelope method gives every amount a job before you spend it.
Do you get to the end of the month and wonder where your money went? The envelope method is a simple way to see every amount you have, and to decide where it goes before you spend it.
How it works
It's been around for generations. When you get paid, you split your money into envelopes, one for each part of your life: rent, food, transport, fun. When an envelope is empty, that's it for that part of your life until the next payday.
There's nothing fancy about it. No spreadsheets. Just a clear limit you can see and feel.
What it does for you
- You see where your money goes. Every amount sits in an envelope with a name.
- You stop overspending without needing willpower. The envelope says no for you.
- Saving starts. The money you used to lose without noticing begins to build up.
- It's calm. You stop dreading your bank balance, because you know the plan.
Cash or the app
You can do all of this with real envelopes and cash. Smarter Budget does the same thing on iPhone, iPad, Mac and Apple Watch, and does the sums for you. Every step in this series works either way.
What's next
The series has nine short steps, and each one ends with one thing to do. Start with step one: list your accounts and balances.
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General information only, not financial advice. Think about your own situation, and talk to a qualified professional before big financial decisions.