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By Dustin, June 11, 2012 3:59 pm

Brandon writes:

What is the best way to manage cash envelopes as well as my checking account’s envelopes?

I still use the cash envelope for some categories – mainly blow money. But to best illustrate this point, lets say we are using the cash envelope system for the following categories:

• Groceries
• Fast Food
• His Blow Money
• Her Blow Money
• Clothing

On my next paycheck I allocate the following amounts in Inzolo:

• Groceries +$300
• Fast Food +$20
• His Blow Money +$10
• Her Blow Money +$10
• Clothing +$30

I would then total these virtual envelopes (putting them all in the same category labeled “Cash Envelopes” would give you a total automatically). The total above is $370. I would then go to the bank or ATM and withdraw this amount. The next time I log into Inzolo I would see this cash withdrawal transaction of $370. I would split this transaction to equal the same amounts above essentially setting them all to zero. Then I would following the cash envelope method as described in this video: