{Week 3: Journey to Financial Freedom- The Envelope System}

Good morning, ya’ll!!! I am so glad you stopped by today. We usually do our  Crown Biblical Financial Study on Monday’s but due to some technical difficulties, it was moved to Tuesday this week. So sit back, relax, and get ready to hear a trick that has the potential to drastically change your financial situation… and no, I don’t mean playing the lottery!!!

For those of you who have the Crown Biblical Financial Study kit, you know that Week 3 (which we’ve sat on for a few weeks) talks about DEBT.

For me, the hardest part of learning about debt was the hopelessness that came upon me the moment I added up the bills. How does one get out of debt when you can barely make it through your monthly bills. I remember as a single mother, this caused a huge burden. I had to worry about caring for my child and working to bring in the income in the home. My heart goes out to all the single mothers who work day in and day out to make ends meet in their home. In my book, you ladies (or single dads for that matter) are heroes!

Back in those days I was introduced to Crown Financial through Christian radio. I was so excited about the possibility that I could do things God’s way with my finances. This was one of the best tips they taught me. I hope it helps you just as much as it helped me back then.


This is how it works. The ENVELOPE SYSTEM is pretty much what it sounds like. You take one envelope for each category of your budget then you print the name of that category on the envelope. On payday, you put the amount of cash budgeted (for each category) for the week or two weeks (depending on your pay schedule) into its corresponding envelope . Once the cash in that envelope is gone, that’s it… you’re done spending in that category until next payday when you refill it.

Example: Let’s say you budgeted $75.00 for food for the week. You get invited out to dinner and end up paying $40.00 on a restaurant meal. That now leaves you with $35.00 to feed your family for the week. With the envelope system, you would be more cautious with your spending because you know that once the money is gone in that envelope, you WILL NOT be pulling money from anywhere else. For now, that might just mean that you won’t be eating out at expensive restaurants…But remember, you have a goal. Debt Freedom is at your reach.


I recommend using the #10 envelopes, they are big enough to fit your cash and any other papers/receipts you might need to stash for the moment.

Then print one category from your budget on each envelope. In the example below, you would have a total of 11 envelopes.


  1. Tithes
  2. Rent/Mortgage
  3. Household Bills
  4. Food
  5. Gas/Automobile
  6. Daycare
  7. Tuition
  8. Cleaning Supplies
  9. Leisure
  10. Medical Expense
  11. Savings (don’t forget to deposit this into your bank. Don’t hold onto savings in an envelope!)

Your list might look like this. You might have less envelopes or you might have more. It doesn’t really matter. All that matters is that you have one envelope for each category of your budget.

Your envelopes can be plain or you can decorate them as you wish. Whatever makes you happy.

I enjoyed using the small plastic accordion style file system. It’s the same idea, except it’s easier for me to carry it all in one place. Instead of having separate envelopes, you simply label each section of the accordion file with the different categories. Here’s what it looked like for me years ago. Simple and effective.


I love Dave Ramsey’s Deluxe Envelope System!!! It’s on my wish list and they are selling it on his website now for only $10.00. ooh la lah…. fancy shmancy!!! Just looking at it makes me feel like I’m going somewhere on this journey…. eh?!

Lastly, if you like the whole idea of the ENVELOPE SYSTEM but you’re more inclined to budgeting and working on your finances with software on your computer. Check out:

Dave Ramsey’s: Budgeting Software

Crown Financial’s: Mvelopes System

(Please note that I am sharing with you my thoughts on the ENVELOPE SYSTEM and it’s effectiveness in my own budgeting. Although I have previewed the software systems mentioned, I am not advertising or endorsing them. I am simply providing information on what’s available out there to help you out with creating a budget system that might work for you. If you like them, great. If you don’t, that’s fine as well. )


So as you can see, there is an ENVELOPE SYSTEM for anyone. It can be simple or it can be as detailed as you’d like. Without a budget, you have no way of knowing what goes out each month. It’s time to take back what you work so hard for. It’s time to start telling your money what to do and where to go!!!!

So are you up for the challenge?




I want to hear from you! Let me know if you are already using the ENVELOPE SYSTEM. How’s it working for you? Or if this is your first time, I want to hear from you too!!! We are on this journey together!



Posted on December 13, 2011, in BUDGETING, COST CUTTING, FINANCES, FINANCIAL FREEDOM, HOME & ORGANIZATION, HOME MANAGEMENT, LIFE LESSONS, ORGANIZING and tagged , , , , , , . Bookmark the permalink. 4 Comments.

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