![]() ![]() We were both resistant to the idea the Dave Ramsey envelope system at first, simply because it seemed like such a hassle (and what about our credit card cash rewards?!). We’ve tried using both paper ledgers and in the past however, we’ve never been able to stick to a system for more than a month or two. While we’ve made great financial progress, one area in which we’re seeking growth this new year is creating and sticking to a monthly budget. It was such an epic moment!Īnyway, The Dave Ramsey Show has really inspired us to get our financial rears in gear, and we’ve worked hard to accomplish several of his “baby steps” such as building up our emergency fund (which we needed last year when one of our cars kicked the bucket). Actually, a fellow blogger and friend, Kelly from View Along the Way, enjoyed a debt-free scream with her husband Andy and their two kids last January. One of my favorite moments on each show is the “debt-free scream” where families actually come to Dave’s studio in Nashville to share their story of getting out of debt ( some of ’em are tear-jerkers, not gonna lie), and then they get to celebrate by counting themselves down to a Braveheart-esque debt-free scream. For those who may not know, Dave Ramsey is an author and financial advisor who offers advice to callers on how to achieve financial peace. We are both avid podcast listeners, and one of our favorites of 2014 was The Dave Ramsey Show. Here’s a little background on what changed that furrowed brown to an intrigued eyebrow raise that said, “Okay…let’s give it a go!” I know, your eyebrows just furrowed a little, didn’t they? Mine did, too, pretty much for an entire year. My current account is now just for bills and my once a month withdrawal.Mark and I are taking a leap this year and venturing into something brand new on the financial front: we’re preparing to try out a cash budget envelope system. It’s visual and I have to hand it over! No more going into town and swiping and then checking bank balance when I get home. It’s also been a huge help with overspending, I just don’t because I see the money. Also I reduced my bank charges simply by not using my card as much only once a month. I live rural so no more panicking to get to bank machine. Kids need a copy for school by tomorrow, the money is in the misc envelope. Something unexpected pops up and I’ve got the money there (Everyday expenses). I never run out of money using this system. That way you won’t run short and reach for the card. One thing that’s really important is over budget rather than under budget. Either way I’ve a bigger budget the next month and more cash flow. If there is money leftover I will often carry it forward to next months budget or maybe pay extra of my loans. This is one thing I love about them because I can save money in the cash envelopes. So the budget is something I decide the month before when I’ve a good idea of what’s coming up. Depending on how many days I’m working, fuel could be €20 or it could be €150! Sometimes we use the fun envelope and something we don’t. For me my envelopes are all variable expenses. The categories I use are food, household, baby, fun, fuel, clothes, beauty and misc. This means on pay day I withdraw the amount I’ve set aside for cash envelopes and then stuff into the correct envelopes. ![]() ![]() My mortgage and my other bills come out of my current account. I now just have the areas where I’ll be using only cash. I had loads of them from my electricity to my gym. This is where I went wrong first time around. I also made little trackers from card which I place in each envelope. At first I found it hard juggling the envelopes but I’ve now upgraded to having laminated ones in my purse. ![]() I made my categories, filled envelopes and off I went. Nothing much, I started with white envelopes where I tracked my spending on the back. The reason I do a month in advance is as I get paid bi weekly, one pay-check covers the envelopes and the next covering bills and savings etc. Filling your envelopes up every time your paid. You can just decide on how much you need for each one and start with one pay-check. I had so many envelopes, ones for mortgage payments, food, this that and anther, and my budget wasn’t even covering the filling of these envelopes! Only recently have I mastered my use of cash envelopes and I honestly think I’ll never go back!įirst thing to say is I started by saving a months cash in advance. I read about cash envelopes & dived in only to fail very fast. So a few years back I discovered Dave Ramsey. ![]()
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