Envelope system

**Jaded** · 09-17-2007, 06:33 PM

I bought the holder for my envelope system. Is there a certain way to do this, or do you just make envelopes for your particular bills?

One thing for sure, these tiny labels aren't going to work. Luckily, I have something I can make them larger with.

I'm excited about getting started!

**Jaded** · 09-17-2007, 06:35 PM

Can't edit, so one more question. How do you deal with bills you pay online? Do you put the cash into the envelopes, then deposit it into the bank and pay them when you get enough?

**FrugalMomof3** · 09-17-2007, 06:36 PM

Congrats! I have the DR envelope system and I have never used it, might try and sell it but who knows, might need it for future use.

**Libby** · 09-17-2007, 06:56 PM

I dont have the offical envelope system but what I used to do with a box of plain white envelopes from the dollar store was:

* label each envelope with the amount needed for the month and what it was for along with due date (gas, grocery, insurance, vacation etc)
* as you get money, divide it up into each envelope accordingly so you're able to pay that bill on time
* when you have enough money collected, deposit it into your bank or pay at the bank. Id deposit mine and transfer the money online to pay the bill

Its simple but each person needs to tweak it to their benefit. I have not read Dave Ramsey's way of doing it - this is my way off the top of my head.

I used to save up $200/month for gas and the following month, start using it. Then I'd have a second gas envelope going for savings - pay as you go gas I guess. Some months I only used $100 so that extra $100 went to savings! Yay!

Good luck!

**Jaded** · 09-17-2007, 07:06 PM

That sounds like a good plan! I'm going to spend my free time this week getting organized and getting this budget thing down pat!

**c1cooper1** · 09-17-2007, 07:17 PM

Jaded, I put the cash into the envelope and then deposited it , like you said. That worked for us. Debit cards were to easy to use! Didn't have labels with mine....had the heapy, cheapy model! I just wrote on mine, in pencil so I could re-use it!! Do what works best and feels right for you!! And, congratulations!! It will be worth it....just hang in there and don't get discouraged!!