Dave Ramsey Envelope Plan

When I lived with my dad, that's how I learned to budget. I don't use it anymore but we're still good at our money managing! Good luck to you!

Ahh, are you going through Financial Peace University? I LOVE IT! Haven't implemented the envelope system - but we have implemented the Debt Snowball (it's very addicting).

Actually, I tried the envelope thing for a while and thought it might be more convenient to get an accordion envelope to keep things together - but it turned out to be more of a hindrance to me because I was always pulling money from other accounts. I didn't have the discipline to keep assigned money in their certain slots ]:

Hope it works out for you! [:

We put a set amount from each check into savings. I have a budget worked out where we have $200 a month for date nights, (we like the movies lol) and $100 each for whatever we want to buy ourselves. Everything else goes into savings or to bills. It works out where about 600-700 goes into savings (We are both paid hourly so mine varies check to check). It works for us. I can't have cash in my house, I would spend it. But I pay my bills every paycheck except rent. Like I put a little bit towards every bill with each check, and even if its paid off before the month is over I continue to put the money there unless emergencies arise, because I figure I will need to pay it next month!

We put a set amount from each check into savings. I have a budget worked out where we have $200 a month for date nights, (we like the movies lol) and $100 each for whatever we want to buy ourselves. Everything else goes into savings or to bills. It works out where about 600-700 goes into savings (We are both paid hourly so mine varies check to check). It works for us. I can't have cash in my house, I would spend it. But I pay my bills every paycheck except rent. Like I put a little bit towards every bill with each check, and even if its paid off before the month is over I continue to put the money there unless emergencies arise, because I figure I will need to pay it next month!

DH and I are going through FPU right now, & we're going to pay off most of our debt by the middle of the summer. The only debt we will have will be the house, & the car we had to buy in January. We will pay it off in 2 years, though.

We're only using "envelopes" for a few things - eating out $$, clothes & entertainment. We pay a lot of our bills online, and gas & grocery $$ is kind of a standard amount each month anyway. But it's been great to force us to review our budget each month & make sure we're on the same page w/ everything. We haven't had an arguement about money yet - we both have to agree on everything we spend, and how much we spend in each category.

I'd *highly* recommend FPU to anyone, particularly if you have trouble doing a budget, sticking to one, or just want some good, practical tips on how to manage your money, invest, etc. It's Christian-based, but it has some very practical advice that anyone can benefit from.

I got some cute envelopes off Etsy. LOVE LOVE LOVE Dave and his "System". I took FPU and it's awesome!!

I've paid off $16k in 18 months and am cash flowing the wedding. Fiance is on board and we're trying to take FPU again. I was signed up for FPU this spring but it got canceled...

Wanted to add - I only take out my cash for my dog, grocery, resturant, and blow. Everything else gets transfered to savings (Car Insurance/Tires/Fees, Dog, Clothing, ect.) That way it sits in a savings account (ING) and if I need it it takes me 2-3 days to get access to it.

I am so glad to know we are not the only ones doing this. When I graduate from school in May, we will have to start paying back my student loans totaling about $17k. So it would be awesome to just save a nice chunk to put towards that, plus have a down payment for a house.

It feels so refreshing to have your money under control. I am excited to start this plan, I know it takes a lot of discipline, but I think we can do it!

I did a similar plan at some point. It helps, but be very careful. I lost an envelope or two a couple of times! It was a disaster because I lost CASH!

Now, I use a similar theory, just use my debit card and record all my expenses so I know if I'm over budget in one area of another. But I've been doing it for years.

P.S. To start paying off the student loans, get a UPomise account! You can register a credit card and there are many stores that give you cash back for buying from them. I even tied my grocery store rewards cards to it and get credit for that! Hey- every penny helps, right?

Meghan I am going to keep the envelopes in their own special drawer that locks because I was afraid of that too!

I track everything now with our debit cards, but it so much easier to swipe a card than hand over cash, at least for me. Its more tangible I guess. So we end up spending a lot of money on dumb stuff. Maybe once we work out this envelope system, we will be able to do it that way.

FH works on the road, so at home all week I pinch pennies, but once he is home on the weekend he is like lets go eat! lets go see a movie! lets go to walmart! lets go to gamestop! and I am like ok! lol So I am hoping this new system will help keep us from doing that so much!

FH and I also use Dave's FPU/Total Money Makeover plan. I agree with Meghan, I am terrified of losing an envelope, and some of our envelopes have a lot of cash in them at the beginning of the month, so I just have a separate checking account/debit card where I put our cash instead. We also still use a credit card for gas, and just pay it off every payday. We have already paid off all credit card debt, bought a car with cash, and are paying cash for the wedding. After the wedding we just have student loans and our house, I can't wait to call into the show and scream we are debt free! We listen to him so much even my kids are excited.

For those that have kids, FPU JR. is also a great plan and my kids love it.

Beth that is so awesome!!!! I hope that is what we will be like very soon! The separate checking account sounds like a good idea for sure! I think once we get the hang of it with the envelopes we will look into doing something like that

I take my cash out of each paycheck - so my grocery budget is split bi-weekly. I also keep all my envelopes at home unless I am out shopping. That way you can't borrow from one envelope to pay for something.

The only cash I carry is my blow money and I do use my debit for gas.

I found that Dave Ramsey is write - you do buy more with plastic. Before Dave, when I went grocery shopping the Saturday after payday, I'd spend $200 at walmart getting "groceries" and um.. anything else that looked good! Switching to cash means my grocery budget is $180/month and I spend very little on other things.

@Carly we've used enveloped for all of our wedding stuff. In my binder I have an envelope for each category (reception hall rental, ceremony venue, caterer, make-up, dress...etc). We set a budget and wrote what each category required and when it was due on the outside. Every pay check we put money in one or two of the envelopes. We've paid for everything (save our Vistaprint invitations and a couple of other online things) with CASH or check. Our purchases that had to be made online were made with a separate checking account we call "Wedding and House." A couple of hundred is automatically deposited into that every month. The envelope method has helped us pay for everything ONLY with money we have, NO CREDIT CARDS at all.

I love "Filling up" an envelope and then being able to mail the payment out. We just got enough to fill up our photographer envelope and sent her the balance. It's a great way to do things.

I am ashamed to say I have never heard of this, but will be researching it! I am HORRIBLE at money management, and I want to know all about this system!!

We are basically doing it. Not literally with envelopes but following a budget like suggested. It's been really great. We haven't run into any issues and we both really like it.

We implement this plan anytime we have a disagreement on a large purchase or trip the other one thinks is not needed (i.e. my shoes and handbags or his electronics). We love it and it truly works. We have a separate envelope for dates <3 .

My mom believes in the envelopes. I use it for food and gas money for me. I use it for FH for Food, rent, save, gas. I can only give him the gas money though and I keep the rest because he hasn't gotten over temptation yet. $ burns a hole in his pocket.

Nicole...my FH is the same way. if he has cash he has to spend it. so i will definitely be in control of the envelopes until he is broken of that habit lol

@Lindy, I have never heard of this either. I use thebirdy.com It's a budget tool that keeps track of what you sepnd. You create categories & can either send a text message or go online to your account when you spend money. It turns your spending into a pie chart, so you can visualize what you're spending money on.

*EDITED for spelling*

I don't understand. You pay for your bills with cash that you put in envelopes? Most bills now a days can't be paid for with cash and does that mean you have all your earning in cash sitting in your house?