I am confused as to where to put the money when I make a budget. Let me explain.....if I allocate 25 dollars a month for car repairs and I do not use the car repair money for several months where does it go? Does it sit in an envelope or do I put it in a bank account. I was just wondering all of your thoughts on this. What does Dave Ramsey recommend?

thanks

I have a seperate checking account that I put it in.

I've run into the same thing - I keep it in the envelope.

my example is: pets - I know that I won't need $25 or $50 per month, but I will need $300 per year - so I'll keep the leftovers in the envelope to accumulate til needed. If I were to put it into the bank, I'd loose track of it & it's intended purpose.

good luck!

We keep ours in our bank account. We keep a spreadsheet of how much has been saved for each category (insurance, gifts, car repairs, etc), so we aren't tricked into thinking we have extra money.

Id suggest putting in into the bank - a seperate savings account or open up and ING account. Keep a notebook/spreadsheet on when and how much you've put in there so you'll always have a running total.

example:

Jan 3rd - Car Maintenance - $40
Jan 20th - Vacation Fund $100

Feb 1st - Car Maintenance Fund - $25 ($65)
Feb 25th - Vacation Fund - $56 ($156)

This way you'll always know exactly how much you put in for what purpose.