The Envelope Method

Growing up, every time I received money I’d put in an envelope and just left the money there. Most of the time I would find myself finding money in envelopes I wasn’t aware of. This habit, I practiced as a kid, turned out to be one of the best financial tools I use to this day. 

     As a kid, I saved small amounts of money, two dollars every month or maybe ten if it where the holidays. This innocent practice that I used, developed the habit of: always saving a little money every month. Growing up I saw this as more of a game. Just to see how much money I could end up with at the end of the year. 

     I took a different approach when I understood the habit that I developed. Around the time when I was teenager, I understood if you saved just a small amount of money each day, by the end of the month you’d have a good amount of money. 

     Thanks to this, I started to practice one of my favorite Financial Tools:

The Envelope Method

     When I first started to see this habit as an actual tool. I tried my best to exploit it to the best of my capabilities. I sat down and wrote a list of things that I wanted to have or buy. Pinned the list to my bedroom door and used it as motivation. 

     Unconsciously I was working on developing a financial plan. For a few months, I saved three dollars every week from Monday to Friday. I left the weekends out of the equation because my weekly allowance didn’t stretch that far.  

    I continued this habit until I had my first job. I worked some time as a waiter in a local restaurant where I grew up. The good thing from where I worked is that waiters got paid weekly. This meant that every week I would have money to carry my weekly expenses. But most importantly I could continue using my method to a different extent. 

     Having a continues flow of income gave me the flexibility to modify the way I used my envelope method. I moved on from just saving three dollars a day to saving a significant amount weekly, by having a different approach. I divided my earnings in fifties. For example:

If in one week I made a hundred and ten dollars I would save ten dollars and have a hundred dollars to use. Some weeks I made ninety dollars, I saved forty dollars and had fifty to use. 

Even though some weeks were better than others, I tried my best to stick with my plan.

     As time passed by, I noticed that this simple tool helped me organize myself financially without necessarily having a budget. While developing discipline along the way. To this day, I still practice this method and encourage everyone to try it. If you want to start saving for the first time or maybe want to incorporate different tools to your financial toolbox. Give the envelope method a try. 

You never know how much money you can save!


Emanuelle Santiago

“Always remember to have that KING mentality.” 

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