I’ve been using a cash envelope system for our grocery budget for a whole 52 weeks now.  It has worked beautifully for our family!  Before we started using cash to buy groceries, 1) I was more likely to go over-budget, or 2) sometimes the “grocery money” in the bank account would get used for something else, and then there was no money for groceries come shopping day.  We’re both glad we have a better system in place now!

The way the system works for us is that Tad withdraws our weekly grocery budget (as well as our tithe) as soon as he deposits his paycheck each week.  Every week I know I have a certain amount to spend, and when it’s gone, it’s gone.  I have to live within our means!

Here’s the fun part, though… whatever I don’t spend from that amount each week goes into another envelope.  This “grocery surplus fund” allows me to make special purchases (bulk foods, strawberries, stock-ups on sales, etc.) that I ordinarily wouldn’t have the money for on a weekly basis.  I consistently come in under budget each week now (by the grace of God, for sure), and I enjoy getting to save those extra few dollars for future grocery purchases.

I know lots of other people use the cash envelope system for all of their budget categories, but for now, this is the one category that really makes sense for our family.  Every family is different, though!

I used bank envelopes (the ones they give you your cash back in) all of last year, but I got tired of how drab they looked.  I decided to replace them with cute envelopes made from scrapbooking paper!

To make your own…
-unfold a bank envelope carefully
-trace the outline of the envelope on the backside of the scrapbooking paper with a pencil
-cut it out
-score (using a ruler) along the flaps so it’s easier to fold
-fold the flaps in just like the original envelope
-glue the bottom and side flaps
-label/decorate as desired

Do you use a cash envelope system for groceries? What about any other budgeted items? How does it work for your family?
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