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[Music]
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hey guys welcome back to my Channel
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today we are going to be diving
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into you guys know it's like the most
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powerfullest money tool that there is
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out there and everybody is pretty much
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hopping on the bandwagon of of this way
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to help control your finances which is
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pretty much the cash envelope system so
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I am going to be actually explaining how
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to get started with the cash envelope
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system a lot of you guys have been
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actually messaging me you said you do
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like the videos where I kind of explain
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a little bit about like budgeting and
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things like that so I just felt like I
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would pretty much do a video like that
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and um so hopefully this will answer all
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of you guys questions that have been
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messaging me so if you are pretty much
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tired of overspending constantly saying
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I don't have enough money until my next
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paycheck or I'm living paycheck to
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paycheck or you just want to pretty much
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say hey I am in control of my finances
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then this is the system that is exactly
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what you probably need so let's get
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started before we hop into that you guys
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know if you have not already clicked on
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the Subscribe button please make sure to
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click on the Subscribe button and the
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notification Bell really love to have
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you here and really love to have your
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input on how you feel about budgeting
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and the things and the steps you took to
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get out of debt or to take control of
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your finances
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yourself so we're going to actually have
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like some little props so we can kind of
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you know go walk through do some little
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bit of examples so that um we can make
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it a little bit fun and not just uh a
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drag so um yeah we're going to actually
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pretty much do that so the first thing
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we need to figure out is what is the
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cash envelope system so to make it
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simple is just a method of budgeting
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where you take cash that you're
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allocating into different envelopes and
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you have like specific categories for
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when you're spending like groceries
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Transportation entertainment um like gym
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just and so on so any categories that
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you can think that you have trouble with
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spending your money and you overspend oh
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mine this I I overspend in cups um I
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love cups so that's why I have a cash
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envelope for cups because your girl want
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a Stanley Cup because I love lots of ice
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cubes lots of ice cubes okay all right
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so basically these envelopes represents
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different areas and different things
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that you have in your budget so by using
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your cash which usually when I use my
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cash I don't want to part with it I do a
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lot better using cash and I do my check
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card because I can't actually see that
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cash leaving my hand so if you're saying
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I I don't want to deal with the cash or
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whatever just try it for a couple days
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or whatever whatnot maybe a week and I'm
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telling you it is so harder to give
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somebody cash your hard-earned cash
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instead of just giving your card and say
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swipe swipe let's hear the let's hear
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the credit card swipe let's hear it
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y'all hear it okay yeah it is so much
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easier to not want to part with your
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money and when you have your envelopes
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it's more easier to say hey I only have
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$10 left in eating out so I need to go
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home and I need to make me a peanut
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butter and jelly sandwich and that's
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what I'm taking for lunch tomorrow or I
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don't have this much money left for gas
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so um instead of me sitting there hot
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riding it and just riding around
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cruising I need to stay my butt at home
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and save some gas okay so we're going to
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talk about setting up your cash
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envelopes so before you actually set up
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your cash envelopes you want to make
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sure I know the cash envelopes are fun
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the savings challenges are fun but you
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want to make sure that you have your
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budget put together first and I know
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when I first started cash envelopes I
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was actually pretty much just saying
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like just just trying to do the cash
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envelops because I thought it was fun
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and I was I was like oh let me just do
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this but I was founding out that I was
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pretty much short on cash and short on
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payments that I needed to make for my
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monthly payments things that I needed to
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pay so basically what you want to do is
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you want to find you a budgeting system
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that works for you and you like I always
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tell you guys you can use any type of
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budgeting system that you that you want
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to use notebook paper um if you have a
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favorite budgeter that you use their
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budget system that works for you go
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ahead do it so here what we're going to
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do is just like here I'm just going to
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do like some random income we're going
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to do this really quick and then we're
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going to get hop back to the um
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envelopes but you have to know what you
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have left in order to be able to do your
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cash envelopes and a lot of people say
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you want to pay yourself first for your
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savings so that's totally up to you and
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how much you want to put towards debt
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because the name of the game is that you
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do want to hurry up and get your debt
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taken care of now I did put the savings
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challenges and syncing funds because
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these are just the little bit of icing
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that's on the top of the cake you don't
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have to actually do sying funds you
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don't have to do savings challenges to
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keep the lights on in your house that
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was my little clip
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y'all but the bills monthly bills like
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your electric bill your W to Bill your
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car insurance those are things that you
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need to get paid all right so we're
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going to say just um payday is on we're
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going to say hey we get paid on the 20th
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this is
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uh weekly paycheck so we're going to say
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that our monthly income is $11,000 so I
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budgeted for $
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900 but actually had we're just going to
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keep it at a th000 we're just going to
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keep it at easy math easy as possible so
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let's just say we have an electric
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bill we have our car payment
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and thank not I don't have a car payment
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I paid that off thank you thank you
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thank you and let's just say we have a w
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bill cuz you got to have your Lo to Bill
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all right so we're going to do Fifth
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Fifth these are due on the fifth making
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it simple so I budgeted for the electric
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bill to be we're going to say 200 cuz
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that electric bill is expensive and
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we're going to try to keep it realistic
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as we
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can car payment let's say
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350 VOA Bill let's say $70 we're going
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to do 70 okay all right so actual we
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actually paid this amount so we're going
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to do$ 350 and we got $70 all right so
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no overage or no shortage and we paid on
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the 5ifth and we're just going to pay
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all of these on the 5ifth all right so
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I'm going to bring down my amounts
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because actually I made $1,000 this is
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exactly what I got this is what I
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thought I was going to get because that
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was
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budgeted so let's go ahead and add up I
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probably add this myself but we going to
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be safe and use this calculator cuz
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that's what this calculator is for all
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right so we have
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620 all
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right wo this is getting caught on my
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shirt okay so we have 620 so what I do
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is like a check Ledger I'm taking 1,00
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200 from 1,000 which is 800 oo I'm
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getting into um some um strenuous math
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so 350 so that leaves us with 450 okay
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all right so then we have $70 okay so
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we're going to take minus
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$70 okay so that's leaving us with
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$380 all right so we're doing a low
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income budget so just say this is all
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that we have to work with because not
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everybody has $5,000 left over not
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everybody has 2,000 or you might not
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even have 1,000 so whatever you have
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left over this is what you're going to
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use for
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your rest of your budget so we're
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getting into it to figure out what we
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need for um our cash envelopes because
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by using your cash you're forced to
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stick to your budget and because once
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the money runs out you know you it it's
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gone and you can't be spending from
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other category cuz I remember when I
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first started I was pulling from other
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categories pulling from my buffer my
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checking but I realized that that did
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not work so savings we're just going to
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do I only have $25 that I budgeted for
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put my bracelets in here and we only did
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$25 so what I'm trying to do is show you
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guys how I'm getting to the cash
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envelopes cuz like I said cash envelopes
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are fun to do but you have to make sure
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your budget your paycheck is pretty much
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this is like your base your meat you
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have to make sure this is all taken care
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of before you do cash envel because
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otherwise you're going to be dipping in
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this going back here to put this here
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and these cash envelopes and going to
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your savings and stuff and that's not
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going to work let's say um I have a
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Grand's
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card I'm going to take $10 out of that
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an actual so $10 so we got 25 so what we
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have left so we're going to take this
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380
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minus
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25 all right 10 all right so we have
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$345 left that we can actually play with
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we're just going to do for just for play
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here so so basically what you do is you
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figure out am I going to do syncing
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funds or am I going to do some savings
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challenges or whatever whatnot am I
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going to take this whole amount am I
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going to just use that for cash
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envelopes sing funs savings challenge so
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it's pretty much like the extra is on
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this page and the you need to do this is
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on this
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page so what I have is for my
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envelopes I'm going to move this
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over all right so what I've done for
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mines is I have identified my spending
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categories so this is what you need to
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do what is something that you are always
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spending your money on when you look at
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your receipts that's left over in your
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purse crumpled up and you like gr day
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like a week later you like oh my
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goodness you mean to tell me I spent $13
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on a salad or I spent $50 on a purse and
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then I stopped at 7-Eleven and I got
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some um some little um Twinkie cakes and
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all that came up to the twinkie cakes
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were like $6 what in the world what you
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need to do is identify your spending
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categor so these are all my spending
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categories and I know these aren't like
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the normal with
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you can use different types of binders
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these aren't the normal um envelopes
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that I use I like these because these
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are more discreet when I'm in the store
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and if there's like too many people in
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the store and I don't feel comfortable
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taking all my envelopes I will bust one
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of these numbers like this and I would
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just go through my wallet do like this
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lift it up just a little bit cuz it's
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just like how a man does his wallet how
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he takes his little cash lifts it up a
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little bit and pull it out so that's
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what I pretty much use I like using this
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wallet for
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um but these are cute too I do like
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using the um you know the binder depends
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on where I'm going and how I'm filling
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all right so this is another one and
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then another wallet that you can
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actually use I know we have the disbound
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wallets that people use to I really love
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this to these wallets let me turn it
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this way so you can see it so you have
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these categories also and um envelope
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wallets that you can you can use
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whatever you want to use for your cash
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envelope wallets okay so first we're
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going to identify spending categories so
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you take a look at your past expenses
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like I said I find receipts that were in
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my purse that were crumpled up or
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receipts that I had that I look back and
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I say I paid that much for a salad or I
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I spent like $50 at the Dollar Tree last
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week what in the world I don't even know
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what I got I don't even know what I got
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so once you determine where your money
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is going and you can just line up your
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receipts so let's just say if we had if
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I saw a Dollar Tree envelope and I spent
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$10 I see a CVS one and I spent $10 if I
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see a Food Lion receipt and I spent
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$125 if I see a crisp receipt and I
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spent um
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$15 if I seen a McDonald's
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receipt I spent $122 you know and so
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that way I can go and say hey I'm
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spending way too much in food so I need
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to figure out I need to set a budget for
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my food and so that way I'm only
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spending $25 a week or I'm only spending
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$20 a week and I need to maximize on my
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food line my groceries so I can
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incorporate making something to take
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with me to work or to have you know make
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my own
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lunch all right so some common
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categories that a lot of people have
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that I have in Minds is groceries that's
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a common one gas is a common one and
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this one right here this is just by
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manifest I know people always ask me
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what is that million dollars in your
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thing this is my manifest Bill yes ma'am
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1 million this my manifest
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Bill all right so another common thing
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people have I don't think people have
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Dollar Tree in there but I have seen
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where some people say hey I added a
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Dollar Tree envelope in my in my
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envelopes all right so eat out is
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another comment and I always like to do
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extra cash just in case if I sell things
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like on the marketplace or stuff like
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that all right um and then usually
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people have Duncan but I just have Joe
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beans because that's what we have here
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and usually people have let's see what
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else I think I said household items cuz
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that's a lot we have there so once you
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do that you want to write all your
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categories down on there because you're
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not going to have them on your envelopes
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first you write all of them down and
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once like I would have like I would
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write down Cris gas groceries all those
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and say Hey Okay so these are all of the
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categories that I need to you know check
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keep check of my spending and you know
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make sure that I'm not overspending so
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once you do that you can label your
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envelopes and you can do different types
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of labels like I have these labels for
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my envelopes here and then like these
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right here these are envelopes that I
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make and these are how I have these
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pretty much labeled there and these are
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so you can pretty much label them
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however you and there's a lot of
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different shops Etsy shops that do
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different um labels for for you know for
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cash envelopes and then I have these
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where I
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labeled just my envelopes like this so
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that is how that is right there once
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you've label your envelopes and you have
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all of your categories this is the part
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that will help you stay organized and if
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you ever need to redo your envelopes or
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anything like that just make you a new
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envelope or you can peel off the label
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and put another label on there super
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easy nothing stressful so so now what we
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do so once you come
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here the categories that you have and
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this is I'm going to show you in my
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budget planner what I do cuz it's almost
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time for my um next cash stuffing so I
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can show you guys that so let's just
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take this for example as you can see all
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of my cash envelopes that I have here I
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have Chris Joe beans Dollar Tree
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personal eatout gas household groceries
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and Aiden so I do put what I have left
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over because that way I can see what
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I've had for the last week and these cuz
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I know I used to always spend a lot at
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Chris cuz I stayed at Chris so a salad
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is $15 so you can just brainstorm on
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notes so that's why I ended up putting
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$15 in there Joe beans I have a gift
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card so I didn't need to put any money
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in there so once you do it every week is
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not probably going to be the same so
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you're going to have to sit down put
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some time aside and say like hey for
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Dollar Tree do I really need to go to
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the Dollar Tree I'm only going to spend
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$10 or personal do I need to get any
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personal items this week or do I have
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enough to last me until my next paycheck
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so I just gave myself $30 eat out I kind
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of mesh this with groceries so it
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depends on how much groceries I have is
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how much I do for eat out because
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sometimes if I don't get enough
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groceries well not enough but I will
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always leave like a cushion for eat out
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just in case of those nights that I have
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I come late and I don't have time to eat
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we can just stop gas same thing you
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check your in from last time did you use
00:16:29
all your gas was the gas money that you
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put in before was that enough do you
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need to add more to it so it's kind of
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like you go you kind of like figuring
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out brainstorming and you're tweaking it
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every single time or sometimes if you
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didn't work as many hours as you did
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last week you're going to have to adjust
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that so don't feel like every week you
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have to put the same envelopes so it's
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always like a
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changing so that's how I actually um oh
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yeah there's my Joe beans gift card so
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that's how I figure out my um envelope
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VES there all right so now the next
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thing is you want to allocate your cash
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to your envelopes so like I said the
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amount that you have each week a lot of
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people what they do is they have like a
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cash tray you don't have to get a cash
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tray you can pretty much take your cash
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and just pretty much um I'm going to
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take some with this cash I have to cash
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stuff anyway so you just pretty much
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take your cash and this is all and you
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just pretty much line it up you don't
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need a c but I have a cash tray when you
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first start and you don't have money to
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buy a cash tray line that junk right up
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on that desk like that and that looks
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just as beautiful as it does a cash tray
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so you're pretty much going to line it
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up and you're going to say hey I'm going
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to
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allocate one to $1 to Joe beans so
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you're going to put that in the envelope
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I'm not going to put this in there
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because this right here I have to finish
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figuring out for my cash stuffing all
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right so for Chris you're going to say
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hey Chris I'm going to do $20 so you
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take 20 bucks put it in here all right
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so next you
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take if you say hey gas last time I put
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60 but all I need is $40 cuz I already
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have
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50 so you can pretty much cut back on
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things that you don't need a lot in and
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just because you have the extra you
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don't means you have to put it in there
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you know what I'm saying cuz I know
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sometimes the thing is if you have extra
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you going to want to spin it just
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because it's in there but you can say
00:18:27
hey I did say last week I have 50 left
00:18:30
let me just put 40 so you can just put
00:18:31
40 into your envelope there now now that
00:18:35
your envelopes are pretty much set up
00:18:37
it's pretty much time to start using
00:18:39
your
00:18:40
envelopes all right let me put this
00:18:42
money back in here if I get it all mixed
00:18:44
up okay so when you need to make a
00:18:48
purchase now some people do this with
00:18:50
their credit card they just leave this
00:18:51
in there and they just keep track of
00:18:53
what they spend so at the end of the
00:18:56
month when they need to pay their credit
00:18:57
card back they just just pull them cash
00:18:59
out of the envelope put it in a um got
00:19:04
this all turned up put it in a envelope
00:19:06
and take it back to the bank so that's
00:19:08
where you see I have where you at I have
00:19:12
Bank Run so Bank Run would be money that
00:19:14
I would actually you know take back to
00:19:16
the bank so once you go to the store I
00:19:19
mean this is I know people are saying
00:19:20
like hey girl that is simple but some
00:19:22
some we have to you know I want to make
00:19:24
sure that I'm explaining it easily so
00:19:26
when I go to crisp if I have have $15 in
00:19:29
here that the total is $13 so what I do
00:19:31
is pull out my 10 and my five give it to
00:19:33
them the change that I have left I put
00:19:36
my money in here and I have a coin pouch
00:19:39
that I actually put my coins in because
00:19:41
y'all know that I do have little coin
00:19:43
containers cuz I do wrap those up and
00:19:46
this is a good way to actually also save
00:19:48
again because the coins that you save
00:19:51
you can actually use that to pay debt
00:19:52
put in your savings or you can use it to
00:19:54
cash it in to just reuse it for the the
00:19:58
next week so you can just kind of reuse
00:20:00
it so one thing you have to remember is
00:20:03
that once that money is gone that money
00:20:06
is gone cuz I know that was hard for me
00:20:08
I just kept picking out of other um
00:20:09
envelopes until I figured out that Tina
00:20:12
that ain't the way to go and that is not
00:20:14
how so as you can see some of my
00:20:15
envelopes are empty and um I'm just have
00:20:18
to wait until the next cash stuffing and
00:20:21
then that way you will you know what I'm
00:20:23
saying you will pretty much get yourself
00:20:25
into a routine of saying hey I don't
00:20:27
have money and then it gets to the point
00:20:29
where it doesn't even bother you anymore
00:20:31
that that envelope is empty so my
00:20:33
question to you guys is so would you
00:20:35
consider using the cash envelope system
00:20:38
do you think it's easy do you think it
00:20:40
will be complicated to start or do you
00:20:43
feel like no I'm going to keep using my
00:20:45
credit card and I'll pay it at the end
00:20:46
of the month or you feel like I think
00:20:49
that's a good system I think I may give
00:20:51
it a try so first of all it will
00:20:54
seriously you will hear a lot of
00:20:55
different budgeters saying this has
00:20:57
helped them get out out of debt help
00:20:59
them um pay off their cars buy houses um
00:21:02
pay off their student loans do like
00:21:04
different things and avoid overspending
00:21:07
cuz since you're limiting your cash you
00:21:10
are less likely to buy stuff and like I
00:21:12
said when you see that money in your
00:21:14
hands you are going to be like I am not
00:21:16
spending my money and I was kind of like
00:21:19
oh my gosh I cannot believe I'm not
00:21:20
spending my money so it it it was like a
00:21:24
game Cher so and then last but not least
00:21:27
it does reduce Financial stress so
00:21:29
knowing that you do have money set aside
00:21:32
and also this preps you to be able to
00:21:36
save larger amounts so that if you do
00:21:38
see if you do save larger amounts and
00:21:41
you see something and you ask yourself
00:21:43
do I really need it so you'll be more
00:21:46
mindful of and strategic on what you
00:21:50
spend your money on thank you so much
00:21:52
for watching in conclusion as you can
00:21:54
see the envelope system has done wonders
00:21:57
for me and I have no intentions of stop
00:22:00
doing the cash envelope system so thank
00:22:02
you guys so much for watching and if you
00:22:03
found this video helpful don't forget to
00:22:05
give it Thumbs Up And subscribe to my
00:22:06
channel for more tips on personal
00:22:09
finances and budgeting and like I always
00:22:12
say until next time guys
00:22:14
[Music]
00:22:15
peace
