Envelope Budget Planner

What is envelope budgeting?

Envelope budgeting is one of the oldest and most intuitive ways to manage money. The concept is simple: at the start of each month, you divide your income into categories (envelopes) and allocate a specific amount to each one. When an envelope is empty, you stop spending in that category.

Originally, people used physical cash envelopes, literally stuffing bills into labeled envelopes for groceries, rent, entertainment, and so on. The tactile nature of handling real money made overspending feel immediate and real. Today, digital tools like Hearth bring the same discipline to your bank accounts and cards.

The beauty of envelope budgeting is its simplicity. You don't need complex spreadsheets or financial knowledge. You just need to decide how much goes where, then stick to it. It works especially well for couples, because each person can see exactly how much is left in each category. No guesswork, no arguments.

Hearth automates this entire process for you and your partner. Transactions are categorized automatically, envelopes update in real time, and both of you always know where you stand. Try the planner above to get a feel for how it works, then let Hearth do the heavy lifting.