The cash envelope system (also known as cash stuffing) is a simple way to ensure you stick to your budget every month.
It’s a more physical way of planning your spending. It takes away the casual nature of digital transactions which require you to check your banking apps regularly to keep track of spending.
Many people are switching to cash during the cost of living crisis in order to keep on top of their spending on essential and non-essential categories.
To make it easy for you to get started I’ve created some pretty free cash envelope templates for you to print off and use at home! I’ve got both a vertical and horizontal printable option for you to use.
How to use the free printable cash envelopes
These printable templates are A4 size and come in a PDF format. However they will also work when printed onto US letter size.
Simply download them and print off as many copies as you need. To put the templates together you will need:
- Printer
- Card (preferably) or paper
- Scissors
- Glue
Each envelope you print will be used for a different category. Simply write the category on the front.
Once you have printed the envelopes you then need to cut them out and fold along the lines to create the envelope shape. Then use a glue stick to seal all of the edges and finish your envelopes.
I recommend using thin card rather than paper when printing these off at home, for best results.
With the vertical template you have a transaction tracker to keep on top of how much you are spending as the week or month progresses.
Free cash envelope templates
Download your free templates below. You’ll notice the horizontal envelopes have a selection of pretty patterns to choose form, I’m a huge fan of the green leafy print!
Cash envelope categories
What categories should you use for your cash envelopes?
Here are some example categories you may use. I’ve not included mortgage, rent and utilities here as it’s likely you’re paying those by direct debit every month.
- Food
- Eating out
- Petrol
- Clothes
- Kids fund
- Hair and beauty treatments
- Entertainment
- Pets
- Gifts
- Emergency
- Books and stationery
- Donations
You might also want to create one-off cash envelopes for things like Christmas expenses and birthday parties for your kids.
Tips for using the cash envelope system
Follow these easy tips for getting started with using your cash envelope system.
Set your budget
Start with figuring out how much money you actually have available to spend. So begin with your income for the month.
Now look at what you would usually spend on each of these categories. If you are going over your income and spending beyond your means then it’s time to cut back.
Look at the non-essential categories – that would be eating out and entertainment to start with – and begin there.
If you want other ideas for how to save money check out this article.
You need to decide how much you will budget for each category, and write that figure on the relevant envelope if you like.
Fill your envelopes
The cash stuffing is the fun part of the envelopes system!
The pretty designs on my free cash envelopes make this much more fun.
You need to withdraw the right amount of cash to fill each envelope with money.
Organising your cash envelopes can be done in a clear pencil case or a money wallet.
Alternatively you could try adding them to a folder like this video shows!
Stick to your budget
Now this is the tough bit! You now need to stick with only spending the cash that you withdrew for the month.
However the idea of the envelopes system is it keeps you on track and helps you stick to the plan you set at the start of the month.
The key to this is making a realistic plan in the first place. There’s no point in planning to spend £300 on clothes when you know your £200 food budget is going to be a real stretch.
It’s about prioritising and analysing your spending so it’s easier for you to keep on track. That then gives you more motivation to keep going.
Review how you got on
The first month of cash stuffing can be a matter of trial and error. So once you’re done with the first month take a look back at how it went.
What were the areas you overspent in, if any? What were the reasons for the overspending and how can you adjust your budget so that it doesn’t happen next month.
Cash envelopes system vs cash stuffing
You’ve probably seen tons of videos of people showcasing their cash stuffing for the month on TikTok.
Cash stuffing is exactly the same as the cash envelope system! Just a different name.
Digital cash envelopes
There are a few obvious disadvantages to having hundreds of pounds of cash out of your bank account. Those include losing the cash or it being stolen.
If you hate the idea of having all of your cash for the month out of your bank account then you could try a digital cash envelope solution.
The easiest, and free, option is HyperJar. This app allows you to allocate funds to different “jars” which you can name whatever you like.
So you may have a jar for food, one for clothes and another for days out. You can specific what shops are OK for money to be spent from each jar.
Basically each jar is an envelope. You’ll need to transfer money to the app, however it is a secure platform to use.
You can read more in my HyperJar review.
Final thoughts
I hope you enjoy these templates and they help with your weekly budget.
Still looking to save money and budget more efficiently? See this article about saving money on food and my best frugal living tips.
