A Look at My Filofax Budget Envelope System

This post was originally posted in 2014 but gets updated yearly.

If you're already working on fixing your finances (whether it's from by being on a budget post or my book), you're likely feeling motivated to create a spending system that works for you.  This is key to taking control of your spending by using cash and finding a way to keep it organized. I've shown off my original Filofax Budget Envelope System and I want to give you the tips to make your own!

Step 1: Pick Your "Wallet"

What I Use: Filofax Temperly personal size
What You Can Use: I will forever sing praises for the Filofax organizer because you can put so many other things in there besides your envelopes but if you don't want to get this fancy you can also use a plastic expanding file for coupons. Anything with a loop closure, snap, or zipper will suffice.
 

There are other Filofax options that zip up here, here and here.
You can find cheaper small expanding organizers here and here.

Step 2: Pick Your Envelopes
What I Use: Plastic Zip Envelopes

What You Can Use: You can find zip envelopes here and here. They are perfect for keeping your cash secure and safe. I used a label maker to put the name of each category on the front of the envelopes.

Step 3: Organize Your Loyalty Card and Gift Cards
What I Use: I keep my loyalty cards and gift cards in the first pocket.
What You Can Use: If you have a basic accordion file you may just want to place your gift cards and loyalty cards in the first or last pocket.

Step 4: Organize Your Coupons
What I Use: I keep my coupons in the second pocket of my Filofax.
What You Can Use: You can keep yours anywhere, even in it's own pocket in a mini accordion file. You want them to be with you at all times so there's no excuse not to use them!

Step 5: Create an Expense & Deposit Log
What I Use: I made my own Transaction and Deposit Logs
What You Can Use: Download and print my free Transaction Log and Deposit Guide. You can also make your own in Word or Excel. Whenever you make a deposit or spend from your envelope you MUST log it. The Deposit Guide allows you to know what amount to put in each week or biweekly when you get your paycheck. I've become accustomed to the joy of withdrawing the money at the ATM and filling up my envelopes.

At the end of the month, you may have money left over in certain envelopes you can roll it over to the next month and use it as a mini savings fund, take it out and move it to a different category of your choice, or roll it over to act as a deposit for the next payday in that or another envelope.  This lets you take out less cash on payday.

If an emergency arises and you are short in a category:
Take from your emergency fund. I do this with my pet fund. Say one of my dogs is sick and needs an emergency check up at the vet. The bill ends up being $200 but I only have $100 in my pet fund. I would pay the bill with $100 from my pet fund and $100 from my emergency fund. For more information see my budget post where it mentions the emergency fund.

If your envelopes are getting too full:
Simply take the cash out and put it into paper envelopes that go in a safe and secure spot in your home, like an actual safe. With the money securely tucked away, you won't have to worry about carrying such a large amount of cash on your person and your envelope system will have some breathing room.

Did you know that I offer a budget spreadsheet, debt tracker, and I have a financial book available for purchase? Get your FREE Financial Spreadsheets HERE. Be sure to join my Facebook group, Fixing Your Finances, to help you with your finance journey along the way.

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