Envelope System (Cash Only Budget) Explained | How to Make A Budget

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In today's video, I'm going to be going over how to make a budget using the envelope system. This is also sometimes called the cash only budget or the clip system if you follow Rachel Cruze.

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In a nutshell, the envelope method of budgeting forces you to make your purchases with cash that you have separated into various envelopes labeled by category. Some examples of categories include groceries, eating out, transportation/gas costs, and entertainment expenses.

As you can tell these categories are all variable from month to month. Things like mortgage or rent are not always included in the envelope method (or at least most people don't fill an envelope labeled "mortgage" every month. They just have it paid from their bank automatically).

The goal of this budgeting method is to control spending (and by extension avoid debt) by forcing you to make your purchases in cash.

If you enjoyed this video you can check out some of my other videos at the links below!

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All of my Budgeting Videos: https://goo.gl/VQKAb6

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Please watch: "The Budget That Pays You First | Reverse Budget Explained | Budgeting For Beginners"
https://www.youtube.com/watch?v=6RmnUXnBc_g
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Видео Envelope System (Cash Only Budget) Explained | How to Make A Budget канала Next Level Life