Sometimes when friends ask me about Inzolo I will say it is a virtual envelope budget system. Often, the response is, what is and envelope budget?

This concept has been around for probably as long as cash and envelopes have been. Basically, with and envelope budget, when you get a paycheck, you cash it, and divide the money into different labeled envelopes representing spending categories. Then as a bill comes due, or you go to get groceries, you spend money from its assigned envelope. When the money runs out, you’re done spending, or you choose to sacrifice from another envelope. It’s really that simple.

Below is a video from the No Credit Needed blog showing the envelope budget using monopoly money.