How to Budget With a Cash System Wallet (Inspired by Dave Ramsey)

I’m going to show you how to use a cash system wallet. Budgeting is so important for every household. If you are the keeper of your home you are also the home economist.

Some people think cash is a thing of the past, but cash is still so important to our economy and our society. It’s also a great way to control your spending. Read on for easy home budgeting tips using a cash system wallet.

It is so much easier to swipe your card or use an app, but the issue with spending that way is the spending doesn’t affect you.

So many households today make a fantastic income but they’re going into the red every month or overusing their credit card and they don’t know where the money is going. It’s too easy to swipe your card without thinking. Cash is a fantastic tool to keep you within budget and hit your financial goals.

Cash system wallet

Cash system wallet

One of the tools I use to help keep my cash organized is a cash system wallet. A cash system wallet is a wallet that has a small binder of cash envelopes inside. You break your cash down into categories and create an envelope for each category.

Taking out cash for the month

Every month I go to the bank and take out all the cash I need for the month. I don’t put all of it in the cash system wallet because that would be a lot of cash to carry around with me.

Sinking funds binder

In addition to the wallet I also have a sinking funds binder. A sinking funds binder also has envelopes for different categories. It is an excellent tool for your savings goals.

Cash categories

My cash categories for my wallet include but are not limited to groceries, gas, clothing, pet care, household, and copay. Every month I sort my cash into the designated envelopes. I make a list of all my categories and indicate how much money I need for each. Then I cross each category off as I fill the wallet.

Separating cash for groceries


I give myself $100 a week for groceries. Each month I take out $400 for groceries and I separate each $100 stack with paper clips. I ask the bank teller to give me $20 bills to make it easier for me to break down spending each week.

Using post-it notes to bundle cash

You could also use a little Post-it on each bundle indicating which week the money is for. I work my way through my list and stuff each envelope with the cash budgeted for that category, crossing them off my list as I go.

Seeing all your cash and sorting through it actually makes you more hesitant to spend it. It motivates you to hold on to as much of it as you can.

How to budget with a cash system wallet

I contribute to certain categories every month to save up for big expenses. Some examples of these are my copay category and car repairs.

I also have categories for each of the holidays, birthdays, and occasions throughout the year and I add a little to each every month. That way when the event comes around I have accumulated enough to buy gifts or whatever else I need.

This cash wallet system really works. When the money is gone, you’re done spending money for the month. This motivates you to manage your money carefully all month long.

When I get close to the end of the month and start feeling like I have nothing left to spend, I start planning for the next month. I figure out what I’m going to want and need. I start laying out all my plans so when the new month comes I am ready to go and know exactly where all my money will be going. 

How to budget with a cash system wallet

I hope you found this helpful and inspired to work with cash and implement a cash wallet system. It is an incredibly efficient way to manage your budget every month. If you have any questions or ideas, please leave them for me in the comment section.

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