Envelope system?????

**yonksgirl** · 12-18-2007, 10:20 AM

In the TMMO Dave kind of touched on the envelope system but did not explain it. Which book is that in? Or if anyone would be so kind as to explain it I would be greatful! Also does it work for you and what are the pitfalls?

**sunshine** · 12-18-2007, 10:28 AM

Here's what Dave's site says about it:

http://www.daveramsey.com/etc/cms/in...ContentID=3461

**yonksgirl** · 12-18-2007, 10:33 AM

Thanks you! I guess I should have googled

**sunshine** · 12-18-2007, 10:34 AM

We've used the envelope system for years, and it works well for us. Here are our categories (your's may vary)

Groceries
clothing
gifts
vacation
gas
car maintainance
entertainment
blow money
Christmas (I buy gifts year round)

**sunshine** · 12-18-2007, 10:37 AM

It does take a few months to tweak the numbers for the envelopes -- so don't get discouraged right off. Be prepared to eat lots of beans and rice the end of a pay cycle if you're not careful with your grocery money

**Marie78** · 12-18-2007, 07:36 PM

I am trying to use this envelope system in the new year too. I am budgeting to the penny of where my money is going every month, including money set aside for savings and charitable donations.

I am only taking out of the bank: money for groceries, gasoline, and my money. I'll have 3 envelopes to keep track of. The rest of the money will stay in my account to write out bills and anything left over in the account at the end of the month will be extra towards my cc debt.

**KJayEsq** · 12-19-2007, 05:25 AM

I just started using Dave's envelope system too. After less than a month, I am totally on board. It almost becomes a challenge to see how much you can have left at the end. LOL.

I am paid twice a month, so I take my monthly spending goal for groceries, entertainment, etc. and divide it by two. I plan fill my envelopes on the 1st and 15th of the month. This month, I found I had so much left in my entertainment envelope, I haven't refilled it and I'm seeing how long I can make it last.

It's totally easy. A child could do this plan. I don't know why it took me my entire life (and the need to read a book first!) to figure it out!!

**Momof4cats** · 12-19-2007, 10:40 AM

Originally Posted by Marie78

I am trying to use this envelope system in the new year too. I am budgeting to the penny of where my money is going every month, including money set aside for savings and charitable donations.

I am only taking out of the bank: money for groceries, gasoline, and my money. I'll have 3 envelopes to keep track of. The rest of the money will stay in my account to write out bills and anything left over in the account at the end of the month will be extra towards my cc debt.

That's pretty much what I do, except my envelopes are groceries, cat food and maintenance, and my money. I like paying at the pump too much to use an envelope! Especially since I have to fill up every 2 days.

**adavant** · 12-20-2007, 08:08 PM

I have an envelope system from Dave himself. I also have FInancial PEace university. With the way my money is now adays I don't have the cash I need weekly to actually use this system though I'd like to try again in 2008 if I can figure out how. but I love Dave's methods they work, when done right!

**homemaker66** · 12-29-2007, 04:12 PM

I am still alittle confused. we get paid weekly and mine is every two weeks. the money goes into our checking account. So how can I make this work? Do I need to go to the bank and pull the money out or can I keep track of the money spent on little sheets of paper into the envelopes. This is my 2008 plan and my dh is onboard all the way. I just put a bid on ebay of the book and workbook I will only pay 10.00 for it. keeping my fingers crossed. Thanks for the help.

**Marie78** · 12-29-2007, 04:26 PM

Originally Posted by homemaker66

I am still alittle confused. we get paid weekly and mine is every two weeks. the money goes into our checking account. So how can I make this work? Do I need to go to the bank and pull the money out or can I keep track of the money spent on little sheets of paper into the envelopes. This is my 2008 plan and my dh is onboard all the way. I just put a bid on ebay of the book and workbook I will only pay 10.00 for it. keeping my fingers crossed. Thanks for the help.

That's the part I don't like about the envelope system. That's why I leave it all in the bank and only take out a set amount for groceries, gas, and my spending money for a two week period. Then when I get paid again I w/d a set amount for the next two weeks for groceries, gas, and my money. The rest of the money I will leave in my bank, since I get direct deposit. Then I can write checks for my bills and I'll make sure that I am transferring a set amount to savings each month. I only want to have just enough money in my envelopes to buy the things I need in cash. Anything like a hair cut, clothing, car repairs, etc... will be taken out of the bank as I need it and have saved for it.

**imforpeace** · 12-29-2007, 04:38 PM

I tried the envelope system as well. Now, I just write down every penny spent and put taht amount into columns for each category. This way, if I've spent too much on one then I take it from another that month. This system works better for me than the envelope system did.

**homemaker66** · 12-29-2007, 04:51 PM

thanks for the input. doing the envelopes is going to be hard for me. just one more thing to remember to do each week. like we don't have enough going on. I can't waite to reach the 1000.00 mark of the savings. we put away 40.00 this week. it is going to be tight for a couple of months but we will make do like everyone else. my plan is to have the cc paid off within the year. we have two with a balance of 4500. tonight is our last night of going out to dinner and this is our mark of turning over a new leaf for 2008. Thank god dh is onboard. Thanks for all of the support from this family because I know that I am going to be the laughing stock of my real family.

**KJayEsq** · 12-29-2007, 05:27 PM

When you (and the rest of us!) are debt free, then we'll be the ones laughing. Hang in there with it! There is plenty of support to be found in these forums.

**Juto** · 01-04-2008, 09:54 PM

The envelope system didn't work in our house. We buy our gas at Costco, so you HAVE to use American Express or a Costco Cash Card (easier to use Amex AND earn cash back). With groceries, too many times I have to call my DH on his way home to pick this or that up...well, I have the envelopes at home...so that didn't do any good either. We just didn't succeed with them.