Envelope system?

[khigh]

Has anyone tried Dave Ramsey's envelope system for budgeting? We were looking into it and at some of his books because there always seems to be more month at the end out our money and before investing in another budgeting system, wanted to know if it worked.

[Gabby]

I gave up on living by a 'budget' a long time ago... budgets are like New Year resolutions... good intentions that are destined to be broken.

Highly recommend these two books...

Smart Couples Finish Rich: 9 Steps to Creating a Rich Future for You and Your Partner by David Bach

The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach

[LeroyBrown]

Has anyone tried Dave Ramsey's envelope system for budgeting? We were looking into it and at some of his books because there always seems to be more month at the end out our money and before investing in another budgeting system, wanted to know if it worked.

My wife and I started on the envelope system when we first got married. It works as long as you discipline yourself not to take money from one envelope to use for something else.

That was a problem I had.

[curtis123]

Has anyone tried Dave Ramsey's envelope system for budgeting? We were looking into it and at some of his books because there always seems to be more month at the end out our money and before investing in another budgeting system, wanted to know if it worked.

I used something like that when I was getting back on my feet in the early 80's. Yeah, it worked, but I think any budgeting system works if you discipline yourself.

If you have some debt, I would recommend focusing on one debt that's a smaller, reachable balance, and hit it hard with some extra payments if you can, then, when it's paid off, use that to hit the next one, and so forth.

When you pay off a note, it's always a good feeling and gives you incentive to keep going. Some call it "powering down". My wife and I did that after we got married, to clean up our debt. It really worked well. We even had a special "note burning" metal bowl that we torched our paid off notes in.

[ArmyMAJretired]

Has anyone tried Dave Ramsey's envelope system for budgeting? We were looking into it and at some of his books because there always seems to be more month at the end out our money and before investing in another budgeting system, wanted to know if it worked.

I LOVE Dave Ramsey's system, my wife and I went through the 13 week Finacial Peace University at our church.

That said, we did it a little differently. We came up with a budget and paid cash for the majority of our purchases. (We kept our credit cards and paid the balance at the end of the month), but w ekept every receipt for about 3 months and adjusted our budget as needed.

Bottom line, if you budget $10 a week for lunches out, YOU have to be disciplined enough to keep to it, envelope or not.

We are now on baby Step 3: Saving 3-6 months emergency expences.

Step 1: Save $1,000 emenrgency fund
Step 2: Pay off all outstanding debts, smallest to largest.

[birddog1]

Has anyone tried Dave Ramsey's envelope system for budgeting? We were looking into it and at some of his books because there always seems to be more month at the end out our money and before investing in another budgeting system, wanted to know if it worked.

I have not specifically tried the envelope system but I have read a couple of Dave's books and run most of my financial dealings based on his ideas. Even though I have not tried it myself I think the envelope system is an excellent way for a person that is just starting to budget to get started. Actually having and using cash to make purchases goes a long way in changing spending behavior.

I highly recommend The Total Money Makeover and Financial Peace Revisited but they are similar enough that you can get by with only buying one of them. I believe that Dave has all his books on sale on his website right now for $10. Have your debt card ready though as he does not accept credit cards.

[birddog1]

I used something like that when I was getting back on my feet in the early 80's. Yeah, it worked, but I think any budgeting system works if you discipline yourself.

If you have some debt, I would recommend focusing on one debt that's a smaller, reachable balance, and hit it hard with some extra payments if you can, then, when it's paid off, use that to hit the next one, and so forth.

When you pay off a note, it's always a good feeling and gives you incentive to keep going. Some call it "powering down". My wife and I did that after we got married, to clean up our debt. It really worked well. We even had a special "note burning" metal bowl that we torched our paid off notes in.

That pretty much sums it up, the main issue is changing behavior and staying motivated, there aren't any revolutionary financial methods that will help.

[ValricoKate]

I have a modified envelope system in place ---very loose.
I have 2 checking accounts one for repeating bills (Including any debt pay down or move to savings).
The other for debit card purchases groceries gas and the like.

It works for us and didn't cost me a plug nickel to set up.

[CaptainPike]

My bank account would probly suddenly come back to life if I just cut up my debit card.

[birddog1]

My bank account would probly suddenly come back to life if I just cut up my debit card.

I would imagine it probably would also. Dave Ramsey often cites a study which points out that the average person spends 9-12% less per purchase if they use cash instead of plastic.