Page 64 - Managing Your Resources - Student Syllabus - short combined

take out $200 from your bank account and put the cash in an envelope. On that envelope, write out
"Groceries." That’s your $200 food budget for the month. Simple,
right?

No money—and I mean zero money—comes out of that Groceries
envelope except to pay for food at the grocery store. If you go food
shopping and leave the envelope at home by mistake, turn around
and go back!

Make sure you take enough money with you to cover your groceries for that trip. If you have $150 cash
and your total comes to $160, take some things out of the cart and put them back. I know, I know—it’s
hard! But it’s better than going over in your grocery category and busting your whole budget for the
month! And make sure you put any change you get back in the envelope.

Don’t forget: When your money is gone, it’s gone! If you want to go to the store but don’t have enough
money, figure out a way to survive until the next pay period. Dig through your pantry to see what you
can find to make dinner without having to hit the grocery store. This is a great way to really get
intentional about your spending!

Reward Yourself
If you have money left in an envelope at the end of the month, congratulations! You came in under
budget! That’s the best feeling. And it’s okay to celebrate . . . within reason. Reward yourself by going
out to dinner, or roll the money over to next month so you have an extra-large food budget.

Rewarding yourself along the way is important because it helps keep you motivated. You have to
celebrate those little wins along the way!

Don’t Cheat on Your Envelopes
Here’s one of the main things you have to remember: be careful not to borrow from the other
envelopes. When it comes to the envelope system, it can be very tempting to shuffle cash from one
category to fund another. Let’s say you used up all the money in your Restaurants envelope—don’t be
surprised if some inner voice tells you to grab that other envelope in your wallet marked "Clothing."

Remember, the whole purpose of the envelope system is to control your spending and help you stick
to your budget.

If you run out of restaurant money, eat leftovers instead of going out. If you see your gas money slipping
away faster than you planned, limit your trips out and about. Find creative ways to make your money
stretch when the envelopes are getting low.

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