Glossary · Couples finance
Envelope Budgeting
/ˈen.və.loʊp ˈbʌdʒ.ə.tɪŋ/ · noun
Definition
A budgeting method where money is pre-allocated into category-labeled buckets, and spending stops when a bucket is empty.
Envelope budgeting was popularized in the 1990s by financial author Dave Ramsey. The original version uses physical cash in physical envelopes labeled by category: groceries, gas, dining. When the envelope is empty, that category is done for the month.
Modern apps replicate the same logic digitally, with virtual envelopes that track allocation and remaining spend. DuetWallet's three-envelope variation (Ours / Yours / Theirs) adapts the method specifically for couples.
How DuetWallet uses this
DuetWallet uses three top-level envelopes: Ours for shared expenses, Yours and Theirs for each partner's personal spending. Sub-categories live inside Ours.
Example in practice
If your Ours-groceries envelope is set to $600/month and you've spent $580 by the 20th, you have $20 of groceries left and a conversation to have about that.
Related glossary terms
Dive deeper
See your Alignment Score.
Join the waitlist to be among the first.