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Can Envelope Stuffing Help With Budgeting?

With prices for nigh on everything rising steadily, it can be difficult to keep track of what money is spoken for and what is free to use. While there are many ways to keep track of your expenses online, some people prefer to have everything laid out right in front of them. 

Cash envelope stuffing (1) is a great way to work out your monthly budget exactly and keep track of just how much money you’re spending and where you’re spending it. 

At the start of the month or on payday, you withdraw your wages and divide it into different envelopes to help you stick to a fixed budget for the month. 

For example, you would put money for rent, mortgage, bills and other household expenses, money towards Christmas and birthdays, savings, debt repayments, money for a rainy day and other budget categories aside so you can keep track of where everything goes. 

You may also choose to put aside any direct debits and online payments first and take the remainder of the money out of the bank to use in an envelope system. 

This means you have no need to access your bank account or check your balance until the end of the month, as all the money you have for additional spending once the essentials are paid for is physically right there in front of you. 

This is a useful method for anyone who finds it difficult to keep track of their money and ends up overspending on unnecessary items or activities, leaving them short for the more important ones. 

There is no set way to use this budget method and it can be entirely personalised to fit your needs and wants. You may even choose to use it for individual savings, like a holiday fund or to save up for an expensive gift. 

If you are struggling with debt at the moment because of cost of living challenges, get in touch with us today to see how debt solutions company Fresh Start can help.




Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.