What is the Budget Plan that involves envelopes of cash for specific uses?

[lbrown1618]

I remember reading about some people that really like this Budget Plan, but I can't remember what it was called.

The basic idea was that you took your paycheck and divided it up between envelopes for that month's expenses...groceries, gas, etc.

Does anyone know what I'm talking about?

[JennyE]

Dave Ramsey's Total Money Makeover uses the envelope system.

[lbrown1618]

Thanks!!

[lahibbard]

The Dave Ramsey plan is wonderful...highly recommend it!

[amzasmommy]

you can get his budgeting forms off his website and you can also order his little envelope wallet. I big puffy heart dave.

[texxie]

we do our own envelope method (did'nt use DR) and it really did work wonders on our finances. we will NEVER do it any other way. good luck!

[jwahlton]

OK, got a question on this. My check goes directly into my checking account. So would I have to take out all of the cash and do this?

[texxie]

DH's check is direct deposit as well. He gets paid every other friday. on those friday mornings, i go to the bank and pull out our envelope money that carries us to the next pay period. I have it broken down into certain denominations to distribute it into the envelopes accordingly.

[jenrose]

DH's check is direct deposit as well. He gets paid every other friday. on those friday mornings, i go to the bank and pull out our envelope money that carries us to the next pay period. I have it broken down into certain denominations to distribute it into the envelopes accordingly.

But wouldn't it gain interest a little longer if you left it in the bank until you needed it and just kept track of your spending? I hate having more than a small amount of cash on me at any time.

[texxie]

we have a seperate high interest account that we use for savings. our "checking" account interest earned does'nt MAKE ME as much as this method SAVES ME. hope that makes sense.