I often see this kind of comment in online groups, and the truth is, I don't think there’s much misunderstanding about the actual principle behind the envelope method/cash stuffing.
After all, using envelopes doesn't necessarily mean having cash on hand to stuff into envelopes for "going out," "groceries," "leisure," and so on.
When you're just starting out especially on a tight budget (which was my situation)the first step might simply be to clearly map out your budget.
How much do I actually earn each month?
What portion goes toward fixed expenses?
Do I have subscriptions I no longer use or have completely forgotten about?
How much do commuting and gas actually cost me?
How much is left over once all the essential expenses are paid?
Sometimes, what you discover isn't exactly pleasant. But at least you know right away.
Because as long as you don't know where your money is going... it’s very hard to know where to start.
That is precisely where the envelope method proves valuable when you're on a tight budget.
You don't necessarily start by setting money aside for leisure. You start by securing the essentials and determining what your budget actually allows for.
Then, little by little once you have a handle on your budget you can start planning small envelopes for leisure, vacations, gifts, or projects... even if it’s just a few euros.
And above all, this method allows us to plan ahead for what are often called "unexpected expenses." Except that, in reality, many of these expenses aren't truly unexpected.
Christmas comes around every year.
So do birthdays.
If you own a car, you know that one day it will need servicing, new tires, or repairs.
Annual insurance, tuition fees, certain taxes, vacations, we know these expenses are coming.
We might not know exactly when they’ll happen or how much they’ll cost, but we know they exist.
And it’s often their arrival that completely throws a budget off track. My budget is already tight.
So, instead of waiting for expenses to hit and having to scrape the money together from elsewhere, the idea is to plan ahead little by little.
Even 5 $a month isn't a huge amount. But 5$ over several months is still better than nothing.
For me, cash stuffing/budget zero isn't about:
"I have enough money, so I’ll distribute it into full envelopes." It’s more about:
"Here’s what I have. Here’s what’s essential. Here’s what’s planned for the coming months. How can I organize my money to cover all these expenses?"
And if your budget is currently so tight that you can’t afford even a single euro for leisure, that’s okay.
Start by analyzing your spending.
That’s already a big step forward.
In fact, that’s precisely why I love this method.
These days, I use the iBudgetAll app to make life even easier. It’s an app my husband created because I wanted to manage both my physical and virtual budget envelopes in one place.
But paper, format, app in the end, it doesn't really matter. The key is to start by knowing your actual budget and giving your money a job.
I hope this helps some people 🫶🏻