And lastly the third option, the envelope system. This system incorporates some of the same principles as a spreadsheet option. You're putting pen to paper and recording things as you go. But there's one small difference, and depending on the size of your notebook you choose to carry, it may be significantly smaller. The envelope system is just that a system that uses envelopes to keep track of your spending. This option can also be as simple or as complicated as you want it to be.

You can carry around an envelope for each category, or just an envelope for needs to include your groceries fuel expenses, and then a second envelope for your once. However many envelopes you choose. You use a specific envelope to record each transaction and to also store your receipts for that transaction. It can be seen as a win win. It all depends on your preference. When you decide which options to choose.

Consider what appeals to you you the most. Compare the options yourself. Whether you're carrying around a notebook, a pile of envelopes, or your smartphone, be sure to pick the one that you're going to stick with.