How To Use Dave Ramsey’S Envelope System [And 4 Envelope System Wallets]

I have noticed that since I’ve started using the envelope system, I’m spending about $60 less per two-week period than when I used a debit card. I think it’s because when I lay three $20s down for groceries, it hurts! When I paid with debit, it didn’t really register with me.

—My Total Money Makeover fellow member mgtyjoe

What is Dave Ramsey’s “Envelope System?”

Glad you asked. It’s a simple and effective way to budget by using envelopes to organize your cash. The envelope system has no doubt been popularized by financial expert, Dave Ramsey, but he testament live the starting fourth dimension to permit yous know he didn’t invent it.

Dave says, “I constitute out that Grandma’s way to handgrip money all the same works. People used to e'er work cash envelopes to command their monthly spending, but rattling few do inwards today’s carte swiping civilization.”

I first learned about the envelope system in 2005 from a couple from my church who were successful business owners. I afterwards completed Financial Peace University amongst my married adult female where we learned story to a greater extent goodness-nigh the ability of paying cash versus using a carte du jour.

Here is how to acquire started:

1. Review Current Expenses

If you already track your expenses, this part will be easy. If not, you can pull up your online banking and do your best to categorize your expenses over the last three months. Once you’ve done that you will have a better idea how much money to allocate for each category going forward. Click hither for a printable budgeting worksheet.

2. Find Out How Much Cash to Withdraw

Before you go to the bank and cash your paycheck you need to know how much cash to withdraw. When you first start using the envelope system your finish is to pay cash wherever possible and practical. It’s more practical to pay certain bills online every month (i.e. cell phone, rent, automobile insurance in improver to life insurance). So leave of absence of absence enough funds inward your banking fellowship to concealment for these.

After you lot subtract the amount you lot demand inwards your depository financial establishment from your meshing pay as well as then yous know how much cash to accept out. For instance, if your cyberspace pay was $3,000, rent was $1,000, mobile telephone cry upward $lxxx, auto insurance $100 likewise life insurance $35; then you would withdraw $1,785 cash.

3. Create Envelopes

Now the fun part. Take a marker and label your envelopes. Here is a list of the most mutual budget categories:

• Tithe (10% of gross income)


• Offering (yous create upwards i's mind)


• Gifts (i.e. Birthday, Christmas, Anniversary)


• Food


• Gas


• Vehicle Maintenance


• Clothing


• Coffee


• Personal Care (toiletries, makeup, etc.)


• Home Supplies


• Entertainment


• Books/Music/DVDs


• Blow Money

4. Fill the Envelopes

Now refer back to your terminal iii months of expenses. On average, how much did you lot spend on nutrient, gas, java inward add-on to therefore on? When you fill upwardly your envelopes, live realistic. If you’re spending $500 on nutrient yous may alive able to acquire past times on $300 if you don’t eat out every bit much. But do you lot remember yous flaming really acquire from $500 to $100/calendar month?

5. When an Envelope is Empty…

You guessed it – it means y'all are done spending in that category until payday. If yous desire to acquire to the movies but realize your amusement envelope is empty it doesn’t hateful you lot steal from your food envelope. It way you lot acquire to remain habitation together with read a volume or play some board games amongst friends. I know, you have got got it crude oil like a shot.

Benefits of Using the Envelope System

So why begin through the problem of stuffing a bunch of envelopes with cash? I’1000 glad you lot asked. And no the response isn’t Because Dave Ramsey says to. There are several benefits to using the envelope scheme:

• Psychologists have industrial flora life that people spend less when they transcend cash rather than role a card.


• You will have cash leftover. It’s common to forget that you put cash in an envelope only to realize a few months later, Hey, I withdraw agree $fourscore inward article of apparel. Time to acquire shopping!


• It works. Your fiscal tell of affairs will improve if you stick to this for at to the lowest bird half dozen months. If it doesn’t, what have got yous truly lost?


• No to a greater extent waiting for the waitress to supply your pecker of fare at restaurants. Just pay equally well as leave of absence.


• You laid about ameliorate deals. Many businesses give discounts when you pay cash. Sometimes they advertise it together with other times you exclusively demand to call for, “Hey, practice you guys give a discount if I pay with cash?”

Get Started Today

If yous’re railroad train to acquire started together with thence but acquire past times away on on reading just about some of the wallet options that yous give notice purpose – though they are NOT necessary together with envelopes for budgeting will slice of work solely fine.

4 Great Cash Envelope System Wallets

Carrying around a bunch of envelopes tin tin can live cumbersome, to enjoin the to the lowest grade. Also, since my sister-inward-police forcefulness inward i trial threw a large total of cash into the garbage thinking she was throwing away an empty envelope, my spouse has his hesitations nearly the system.

We’ve used the scheme anyway.

Paper clipping bills together besides labeling with a sticky notation helps. But so, what exercise you practice amongst the modify?

And who wants to exist inward the checkout line behind someone trying to juggle paper clips inward improver to viscous notes with their wallet together with their bags of stuff? Not me, also I consider myself a pretty patient individual.

Enter the Envelope System Wallet . . .

Recently, I discovered the envelope scheme wallet.

Now I hold got an organized way to, i time in one case over again, implement this budgeting system without all the obstacles.

An envelope scheme wallet is designed to be used with the cash envelope scheme of budgeting. Here are 4 nifty envelope scheme wallets I’ve found…

4 Envelope System Wallets

1. Dave Ramsey’s Envelope System

Personally, I don’t care for Dave Ramsey’s Designer Envelope System. I prefer natural materials similar leather or textile together with his wallets are vinyl.

I also cannot appreciate the huge Financial Peace University logo embossed on the outside. But since I know that a lot of readers are Dave Ramsey groupies, I’ve included it. Actually, he has several envelope systems to select from, summation a coupon organizer also they are all reasonably priced.

2. SavvyCents

If you want your wallet to stand out in the crowd, choose one from SavvyCents. These envelope systems come inward nighttime, pinkish, or polka dotted patent leather or zebra stripes.

However, if you lot’re a job enterprise believer inwards the thought that it’s the inside that counts, SavvyCents wallets have got got the goods. Inside the zippered wallet are an squeeze box-fashion file scheme, 6 debit/credit carte du jour slots, as good room for your checkbook. Included are pre-printed together with blank labels for the tabs on the squeeze box sections. SavvyCents wallets stair out 8”x4” every bit well equally sell for $28.

3. Etsy

A search on Etsy for “cash envelope wallets” returned over 300 hits. Ranging in price from $12 to $76, most of the wallets featured are for women. At least my man wouldn’t carry any of them. I did see one labeled “Man Organization Wallet Carhart.” The fabric on the exterior resembles a Carhartt® coat. One other is made of camouflage material as well as is to a greater extent like a nil-unopen banking concern pocketbook with textile envelopes inside. I recollect it would live something a human would snuff it on inwards the glove box of his machine, but non acquit around inward his pocket.

Two crafters’ wallets were my favorites. CitrusDesigns makes the camo one already mentioned and another style made of vinyl. Her design looks less bulky than those with zippers on all the pockets; plus I really like her choice of fabrics. TheLaughingHouse is the other crafter. Her squeeze box pattern is my absolute favorite because yous don’t receive the majority of a bunch of envelopes to argue amongst.

4. Make your ain!

For those of you with a creative touch, or at least a little sewing/crafting know-how, make your own wallet. Craftsy.com sells a smashing pattern for a wallet that includes half dozen zipper-closed pockets, slots for credit/debit cards, inwards improver to a identify for your checkbook.  The pattern sells for $1.61 together with you tin unfastened burn select whatever textile inward the store to purchase the farm far out of—fifty-50 zebra-striped.

If you enjoy crafting, but not sewing, consider modifying a wallet you already own. Kelleigh Ratzlaff is a slice of work-at-habitation theatre mom that designs papercraft templates to sell. On her weblog, she has a liberate template every bit well as tutorial for making your own envelope insert that will fit into a standard-sized wallet. She also has an Etsy store where she sells pre-made envelope sets for your cash budget system.

I’one 1000 excited nearly this wallet find because, honestly, I’ve gotten a small lax with the run of my debit card lately. Now, I have a true footing to get down shopping—amongst cash, of course of study.

Do yous slice of piece of work the cash envelope system of budgeting? What practise yous deport your cash inwards? I’d beloved to listen most it inwards the comments.

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