Step 1: Determine Your Discretionary income
evaluate how much you have available after paying your bills and put aside for savings and investments.
Step 2: Decide on a budget
this means dividing your money among the different budget categories. Some example of common categories include: Rent, household items, groceries, savings, clothing, gas and gifts.
Step 3: Assign each category to a single envelope
Write the category name on the back or front for each envelope. Then you will be putting the specific amount cash.
The advantages of Envelop System; It will help discipline you, your budgets become more tangible, less wasteful spending and you won’t miss a payment.