Dave Ramsey Support group

maoftwinboys · 07-19-2006, 06:42 PM

OK, I'll start off the Dave Ramsey thread - I have an envelope question to anyone who is doing the envelope thing. Do you really keep money separated into envelopes or do you just log it down and subtract to keep a "balance" from the money in your wallet?

I've been doing this for 2 paycheck cycles (DH is paid bi-weekly) and I am amazed at where my money goes. It is truly illuminating.

Anyone have other tips or tricks?

blessed_with_6 · 07-19-2006, 07:54 PM

I LITERALLY seperate the cash...down to the rounded up dollar. My envelopes start off FAT, but they get skinny quickly...too quickly. It has helped us so much see what is left in there...and it is so nice to see where a few actually have left over at the end of the month. REAL, IN OUR HANDS, works best for us.

Jared&Maggie'smom · 07-20-2006, 07:34 AM

CASH is key! When I literally see the $$ dwindle in that envelope it trult makes me rethink what I am about to buy. Do I really need it? What might I want/need more later on in the month? Using cash will make you spend less.

maoftwinboys · 07-20-2006, 08:29 AM

ok, ok, I'll put it into envelopes. I was just keeping a "log" sort of with balance for each category and then crossing of the amount spent in that category. I think you're right, because I would "borrow" from the other categories!

How do you keep all the envelopes in your pocketbook (or purse or whatever) without the envelopes getting torn up?

I agree CASH is the key. I was going to try to use my credit card to get award points (I don't USUALLY carry a balance) so I thought I would just earn the points for stuff I spent. But OMG, I spent way more than I usually do than when I just use plain cold hard cash. So back to cash it is. I don't need the award points that much.

Jared&Maggie'smom · 07-20-2006, 08:35 AM

I know of people who when they go to the bank to get the cash they just get a handful of envelopes as well. You know, the ones that they put the cash in to give it back to you. Just ask for more. That way you don't need to worry as much about making the envelopes last!!

Rakshanda · 07-20-2006, 09:11 AM

i havent used envelopes, but I use Excel and each cateogry has a limit and i deduct any spending from that category when it is posted in my account. So i know what i ahave left over.
I dont use cc'c but I use the debit card all the time, so the money goes from the ckecking account.
I sat down with DH and we organized our debt, what out priorities are and that we are on the same page.

blessed_with_6 · 07-20-2006, 09:20 AM

Quote:

Originally Posted by [b

Quote[/b] (maoftwinboys @ July 20 2006,08:29)]ok, ok, I'll put it into envelopes. *I was just keeping a "log" sort of with balance for each category and then crossing of the amount spent in that category. *I think you're right, because I would "borrow" from the other categories!

How do you keep all the envelopes in your pocketbook (or purse or whatever) without the envelopes getting torn up?

I agree CASH is the key. *I was going to try to use my credit card to get award points (I don't USUALLY carry a balance) so I thought I would just earn the points for stuff I spent. *But OMG, I spent way more than I usually do than when I *just use plain cold hard cash. *So back to cash it is. *I don't need the award points that much.

Go to The Dollar Tree. They have wallet sized expandable file folders with six pockets for $1. (and if you don't have a Dollar Tree, I know that WalMart has these in their office supply section, but they are $4 and up!) They are plastic, so they will hold up in your purse. I label each of mind and then only take out the cash I think I will need for that day..and the rest stays in the envelopes at HOME, where I can't get to it!! If you don't need the money you took, at the end of the day, PUT IT BACK!! Then, you just do it again the next day. It becomes habit. You could just put all your cash for certain categories in there, and keep it, like groceries, clothes, gas, etc, but for me, I spend less if I only allow myself so much each trip out!!

Rakshanda · 07-20-2006, 09:30 AM

I like this idea!
Now do you put just the expenses you pay by cash in envelopes, like grocery, gifts, charity, gas ect and then the other exenses you have to write a check for like electric, do you make an envelope for them too, or leave that in the bank?

blessed_with_6 · 07-20-2006, 09:34 AM

I pull cash for it ALL...and then dh sits down and writes the checks for the bills that have to be mailed. Before he mails them, we pull the cash, and he goes to the bank and deposits it back in. This way, say, you have budgeted $400 for electricity..but you onlyuse $378. The other $12 stays in the envelope. If it is in the bank, I am going to spend it one way or the other, but in the envelope, we can chose to....1. Keep it in there, just in case NEXT month's goes over the $400, 2. Put it in savings, 3. Put it in another envelope that was more than expected...etc. It works for us.

momof4girls · 07-20-2006, 09:43 AM

Right now in the $1 bins at Target the have wallet size & business envelope size expanding file folders. I have several wallet size ones that I use, 1 for coupons, one for receipts (I never loose a receipt and they are catagorized by store), and now one for cash.