Budgeting Guide #36: The Envelope Method — Old School Budgeting That Still Works

 

Tired of Overspending Online? Try the Envelope Budgeting Method (Desi Style)

In this digital age of UPI, EMI, and tap-to-pay, it’s easy to lose control of your spending. Sometimes, old-school methods like the Envelope System bring back clarity.

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📦 What is the Envelope Budgeting System?

It’s a physical cash-based method where you divide your money into envelopes for each expense category.

Example:

• ₹8,000 – Rent
• ₹4,000 – Groceries
• ₹3,000 – Travel
• ₹1,000 – Entertainment
• ₹2,000 – Emergency/Goals

You put physical cash in envelopes for each. Once the envelope is empty — no more spending in that category.

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📦 Benefits of the Envelope Method

• Forces discipline — you visually see your limits
• No surprise expenses
• Works even with no financial app or smartphone
• Best for those who struggle with online overspending

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📦 How to Do This in Digital Mode (Modern Envelope Method)

Use apps to simulate the envelope system:

• Walnut
• Monefy
• Spendy
• Use Google Sheets manually with expense columns

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📦 Pro Tips for Indians

• Withdraw weekly or biweekly instead of monthly (helps safety)
• Keep big categories at home (groceries), small ones in your wallet
• Label envelopes in regional language if you're sharing with family

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✅ Conclusion

Discipline doesn’t always require a new app. Sometimes, an envelope, ₹500 note, and a clear goal are all you need to control your money.

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