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do u need help budgeting??

Posted by on Jul. 3, 2012 at 11:12 AM
  • 9 Replies
1 mom liked this

The Envelope System Saves $$$

11 Mar

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Someone pinned this picture on Pinterest of them dividing their money into different envelopes. So I clicked the picture and it leads me to Dave Ramsey’s site. It was there that I found this (below). It was simple and made cents/sense, so I thought I’d share it. I hope you enjoy!


Get on a Simple System

On a budget? Still over-spending? Trying to figure out the best way to organize your finances and spend wisely?

I found out that Grandma’s way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today’s card swiping culture. The envelope system is a key component of the Total Money Makeover plan because it works. Here are a few simple basics for starting a cash envelope system:

  1. Budget each paycheck. Budget is a dirty word to most people, but you must budget down to the last dime if you’re going to successfully implement the envelope system.
  2. Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing and entertainment.
  3. Fill ‘er Up. After you’ve categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
  4. When it’s gone, it’s gone. Once you’ve spent all the money in a given envelope, you’re done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can’t spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
  5. Don’t be tempted. While debit cards can’t get you directly into debt, if used carelessly, they can cause you to over-spend. There’s something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you’ll be less likely to over-spend or buy on impulse.
  6. Give it time. It will take a few months to perfect your envelope system. Don’t give up after a month or two if it’s not clicking. You’ll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See … simple!

Certainly, some bills may come in at different times of the month, so you’ll need to adjust your written game plan to take it one step further. You need to plan the budget based upon your pay periods.

Say that you get paid twice a month. If you can write down which bills you plan on paying from each paycheck, you will not be left with a surprise bill. Spend each month’s income and each individual paycheck on paper before it comes in.

Have Some Fun

I also have no problem with you adding an envelope with money just to have fun with! As long as you and your spouse have agreed on it, you are fine. There should be no lying. Agree on your budget, agree on your fun money, and be open. Fun money can be anything you want it to be. There are no rules on that envelope, unlike money in the “entertainment” envelope that is used specifically for entertainment.

by on Jul. 3, 2012 at 11:12 AM
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Replies (1-9):
by Sara on Jul. 3, 2012 at 12:33 PM

we mamange to pay the bills & have a little extra each month... but we need to save more. I think this will work for us. It will take a few months to get the hang of it... but it will work.

Plus we need to start putting K1 in the tank for the winter. prices are pretty good right now so I want to start getting some in the tank... that way we dont have to worry when it starts getting cooler.

We wont have to worry about diapers or formula with this baby but extra costs do come up so I want to have a kids folder in there as well...

I just need the inside pockets.  I think I will start making my budget list & getting ideas on what folders to make & what amounts to put in them.

our bills run about the same each month so that helps with planning.

by Silver Member on Jul. 3, 2012 at 1:53 PM


by on Jul. 3, 2012 at 3:11 PM

Thanks for sharing!

by Chrissy on Jul. 3, 2012 at 6:40 PM

awesome! thank you for sharing. 

by on Jul. 3, 2012 at 8:17 PM
1 mom liked this

This is something I have done since taking over the finances. Its worked great for me.

by on Jul. 5, 2012 at 6:15 AM

I barely manage to pay the bills, and I'm horrible at the grocery store.  shrugging

by Shannon on Jul. 5, 2012 at 10:12 AM

I use my debit card. Its to hard to withdrawl everything extra that isnt deducted from the bank, or paid on line. I do pull out cash for my husband doing cash back at the grocery store for his "allowence" until the next pay day. If not then he spends a lot on different odd things that add up so much.

by Sara on Sep. 21, 2012 at 4:30 PM

here is the envelope system I mentioned to new members

by Steph on Sep. 22, 2012 at 8:59 AM
I've used this in the past and it works.
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