Chloé from ourbudgetplanner.com started using the envelope method when she was 16. At that time, she started a work-study contract, lived with her parents but wanted to be able to put money aside with her 900 euros salary.
“I tested this method to become independent quickly“, she says. Which she achieved quickly thanks to her envelopes. For the entrepreneur, the method is aimed at everyone, regardless of monthly income or family situation, the main thing being that they need a clear vision of finances.
1. Calculate your monthly budget
Study all your money coming in and going out over the last six months to see your habits, what’s going well, what’s not going well, what’s left at the end of the month and your savings. List your expenses and group them into large categories to identify the envelopes you will need (grocery shopping, shopping, leisure activities, etc.). For all these variable expenses, assign them a reasonable amount for the month, which is both realistic but not too inflated. “This step is essentialassures Chloe. But be careful not to create too many categories, which could encourage you to spend too much.“. In other words, no need to put cash in an envelope for an expense that you are not at all used to making.
2. Remove and divide into envelopes
Obligatory step: go and withdraw, in small denominations, the amount you need for all your envelopes. The best time? Once the largest debits have gone into the bank account to make sure everything is paid. For example, 300 euros per month to be divided between expenses related to animals, the car, health, unforeseen events of all kinds or the next vacation. “Everyone thinks they have to empty their account but that’s not the goalalerts the content creator. You should only withdraw what you need in cash», warns Chloe. You will then only have to use the contents of the envelopes for your expenses during the month. But be careful, when the envelope is empty, you must not draw from the others!
For those who consider this step too tedious, certain virtual versions exist via apps. Be careful, however, to check their seriousness before providing your bank details.
3. Plan an emergency fund and take on challenges
“I always advise having an envelope dedicated to unforeseen events, around 50 euros per month, this always helps out», says Chloé. For challenges, the idea is to raise small amounts in a given time. “This allows you to save significant amounts of money without realizing it.she said. For example, in 2025, I managed to collect around 500 euros in 5 notes, which I saved, and 700 euros in 1 and 2 coins which will be for my next vacation“.
