Using a cash envelope system wallet is a good way to start tackling your finances. If you are familiar with Dave Ramsey, you know what I’m talking about.

Dave Ramsey perhaps is the most famous person in the field of personal finance. One of his well-known nuggets of wisdom is the envelope system.

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What Is The Envelope System?

Dave Ramsey’s envelope system is a way of budgeting that uses old-school envelopes to categorize money into different budget categories. Although budgeting cold hard cash is the best way to face financial struggles, there are also some budgeting apps that incorporate virtual money envelopes.

My Own Approach to The Cash Envelope System Wallet

I’m not ashamed to admit that I have a huge debt. A part of it is because I’m not good at math.

I would pay for everything in either debit or credit without calculating how much money I actually have and how much I need to pay for bills by the end of the month. I can’t believe I lived my young adult years without making a budget!

So I ended up spending more than what I can afford. I just realized that when I asked my boyfriend to evaluate my expenses.

You see, it’s easy to spend the money you don’t see and thought you have. So I’ve put all my cards away and started living on cold hard cash.

To be wiser in spending money, I made my own budget and looked forward to using Dave Ramsey’s envelope method.

I’ve been eyeing on this wallet because it has it’s own built-in envelope slots and it’s made specially for the cash envelope method. But I decided to make my own to save money.

Things I Bought

I made two cash envelope systems – one for home and another one for my wallet. I only bought two things:

For My Wallet

multi-colored binder clips
making a binder clip label

I started by making category labels for the binder clips. I also color coded the binder clips I used for each category.

binder clips for cash envelope system wallet

The labels are very small but still readable at a quick glance!

envelope system wallet using binder clips
using binder clips in my cash envelope system wallet

By using small binder clips, I can organize the money I keep in my wallet. They are all organized into different budget categories.

However, I don’t put all the cash I have in my wallet as I keep some for once-a-month bills payment and other budget categories at home. That’s why I have a separate cash organizer at home:

For Home

To organize my money at home, I bought a cheap A6 expandable folder.

A6 organizer folder

It comes with color-coded labels so I just wrote my budget categories there.

using expanding file folder to organize money

I also used the extra slots to keep some important receipts!

Don’t Forget to Track Your Expenses!

Another thing you can additionally do is to track all the expenses you are making. To do this, just keep a small card in your wallet where you can quickly write the expenses you just made.

use of budget card in a cash envelope

By using a small budget card, you can quickly record your expenses at the time you made them so you don’t have to go through your receipts. By the end of the month, you can calculate the total for each category and track your spending habits.

I have a free budget card printable that goes well with the cash envelope system wallet. Download below!