Figure out your spending categories by looking at your past expenses and setting limits for each category so you can save money. 2. Label each envelope with a category name. 3. Add money to each envelope depending on how much you plan to spend. 4. Use the money in those envelopes only. Don't use money from another envelope if one envelope is empty. If you have leftover money at the end of the month, you can either keep it in that envelope for next month's spending or put it into savings or your emergency fund. This will help you save money and pay off your debt.