Don't be scared this is really not hard. If I can do it, you can too. It's going to become a habit and you will never again want to budget without it.
What is the Dave Ramsey envelope system ?
This cash envelope system was design to help you track your spending by categories, so that you can stay on your budget. Because, as you know, a budget is the foundation of your finances.
Sit down and decide on the categories for your cash envelopes
Choose categories that you may be having a hard time with overspending. You don't necessarily have to add your mortgage to a category because i'ts probably an "automatic payment".
For example, this are my cash envelopes categories:
Saving
Groceries
Car
Utilities
Going out
Pocket money
Extras
2. Keep in mind, it's only me and my husband. If you have kids, your categories will probably change or be more.
Then you will divide your monthly salary or available money for the month into the categories you have created.
Throughout the month you will only use the envelope money, but beware, when you're done, don't spend any more. This is the goal. To stick to your budge and not overspending.
You see? it's that simple!
Why cash?
We all know it's way easier to swipe a card without feeling it in your "pocket". While using cash, you are able to have a view of your spending and keeps you from overspending.
USING CASH WILL SAVE YOU MONEY!
Finally, I have a big advise for you ! ONLY CARRY the cash that you need at a time to limit your risk of losing it or it being stolen.
Have an awesome day!
Comments