How the 'envelope budget' could help you save this year

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Here's how the envelope method could help you save money. (KTRK)

If you're looking for a new way to budget in 2018, you may want to try the envelope method.

You may have seen this advice on financial blogs.

First, decide exactly what you want to spend each week on things and label envelopes: Groceries, entertainment, gas, coffee, eating out.

Put exactly that amount in an envelope and only spend what's in that envelope.

For instance, let's say you're a family of four who spends $125 a week on groceries.

Your grocery envelope is only to be used for groceries.

If you run out of cash in the envelope, hit the pantry or raid the fridge.

Don't cheat! No matter how much more you want to spend, limit yourself to what's in the envelope.

The envelope method will not only help you save, but also help you get creative on ways to stick to your budgets.

If you have leftover cash in an envelope at the end of the week, put that money into savings.

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