1. Pay fixed costs first
Start with income and fixed bills. Reserve money for quarterly and annual payments before dividing the remainder into envelopes.
2. Choose a few useful envelopes
Food, transport, leisure and personal care are common choices. Do not create one envelope per shop; each category should help you decide something.
3. Use actual numbers
Review the last three months and choose a realistic starting amount. If you want to save, reduce the limit gradually and decide where the difference goes.
4. Roll over or reset
Some envelopes can reset monthly while others grow for holidays, gifts or maintenance. Choose a clear rule.