Here is Dave Ramsey's explanation of the system:
We are trying the envelopes for a few of our budget categories. Eeeks I'm going to have to re-learn how to count cash under pressure =) If I was going to do this - Hubby's suggestion - then by golly I was going to to have cute envelopes!
At the top is a spot to write the category.
The middle is for jotting down where the money went, how much went and how much is left in your envelope.
At the bottom is a spot to write the amount per month for that category-that goes into the envelope at the beginning of the month.
Also a spot to write down your plan for any extra/leftover cash at the end of the month.
Wish me luck! And if you want to try it here is a pdf of the envelopes to download:
BIG TIP: make sure your printer setting is not scaling the pdf!! Have it on 'no scale' or 'none'.
I printed and glued a whole set till I realized they were too small =(