Cash Envelope Wallet

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I received this product to review from Clever Fox. All opinions are always 100% my own.

Using a cash envelope wallet system is a powerful and easy-to-use tool to keep you on budget. It works so well because it’s a concrete and visual way to keep track of your budget.

The cash envelope wallet is popular with many of the top budgeting advisors and teachers. It’s popular because it works well for any budget level and it is easy to learn and start using immediately.

Using a cash envelope wallet takes your basic cash envelope system up to a high leveler of organization and function.

cash envelope wallet system spread out on wood table with money fanned out near the colorful envelopes

Back in the day people used simple blank envelopes for a budgeting system. Today there are beautiful and fun cash envelopes to choose from.

And why not make budgeting a bit more fun to encourage you to use it?

What is a Cash Envelope?

  • Simply put, a cash envelope is an envelope used to hold the budgeted amount of money for each variable (changing) category of your budget. You remove money from the envelope to pay expenses in that category.
  • The cash envelope serves as a concrete limit on what you can spend in each of the categories.
  • The cash envelope system works so well because it’s a concrete, visual way to know how much money remains in each category of your budget. There is no honest forgetting, making a mistake, being confused or conveniently “forgetting” about your budget which can lead to overspending. The envelope keeps you on track and on budget.
  • You can start using the cash envelope system right away with very little difficulty because it is easy to understand.
  • The cash envelope system has been around for a long time, but was made popular by Dave Ramsey in his book, The Total Money Makeover.
  • The cash envelope system is proven to work for people of all budgeting experience and in all financial situations.
    • It works exactly the same whether it’s the first time you’re using the system or if you’ve been using if for years.
    • The system works the same whether you’re in serious debt or not at all.
budget sheets, cash, cash envelopes and black envelope spread out on table

To use the cash envelope wallet, start by making your budget. I prefer to use a monthly budget, but you can budget by your pay period, if you prefer.

Write down your income for your budget period – the amount that you bring home in your paycheck. If you have multiple sources of income, add those together to come up with your income amount.

Then write down all your expenses, both fixed and variable. Variable expenses are ones that change from month to month. For example, your rent is always the same amount, as is your car loan payment. However, your food, electric, clothing and entertainment amounts fluctuate from month to month.

Determine how much you can spend in each of your variable expense categories and place that amount of cash in an envelope identified for the category.

Typical cash envelope categories

  • Groceries
  • Gas
  • Personal Care Items
  • Clothing
  • Car Maintenance
  • Health
  • Hair and Makeup
  • Entertainment
  • Eating Out
  • Gifts

As expenses arise for a category, pay the bill from the amount of cash in the designated envelope. When the envelope is empty, you don’t make any more purchases in that category until the next pay period.

By paying bills with cash, it makes it much easier to stay within your budgeted amount. You can easily see how much cash is remaining. The visual is a powerful check on overspending.

You can learn more about budgeting from my tips on the best budget planner and my free best budget worksheet for graduates (or anyone wanting to use a budget planner).

Cash Envelope Wallet

The cash envelope wallet holds all your cash envelopes. You can always find your cash envelopes and the wallet protects the paper envelopes.

This cash envelope wallet from Clever Fox is top quality. It contains everything you need and more.

  • Carry pouch (cash envelope wallet) with zipper.
  • 12 cash envelopes with ledger area in 12 different colors, They’re made from  made from TYVEK material, which is waterproof, holds up to daily use and won’t tear.
  • 12 budget sheets to keep a detailed track of your budgeted cash amount and each and every expense.  
Hand holding a cash envelope wallet with cash and envelopes in the background

Using a top quality cash envelope wallet system is important since it’s holding your monthly budget and your cash. You want a system that will protect your cash and make it easy for you to use.

The cash envelope system is a powerful budgeting system that works well, particularly for those new to budgeting or those who have debt to pay off.

Pin for later so you can always find this reference for using a cash wallet envelope in your budgeting life.

See all of my budget ideas in the table below. You can scroll though the table and look for ideas or search for specific ideas with the magnifying glass in the upper right-hand corner (on desktop). Click on the topic and then click through the specific article.

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