Credit Debt Cures

Dave Ramsey and his envelope system?

I am interested in trying out an envelope system like Dave Ramsey suggests, however I was disappointed to find out that his kit costs $20. Are there any other kits out there that are similar, but not as expensive? I'm trying to get debt free and penny pinch like he suggests, so I'm looking for a cheaper way to implement this way of orgnaizing cash. Any ideas?

Public Comments

1. make a 20 dollar "investment" think bout it spend 20 save hundreds even thousands. sounds like a good investment to me
2. If you really want to start getting out of debt, track where you are spending money. Get a tablet, like the ones kids use in school. Draw a line down the center of the first page. On the right side at the top write 'Income' and on the top of the left column write 'Out Go'. Now, add the date. Do this for 14 days, 2 weeks including Sunday. Don't pinch anything because you need to see how you are spending money. Most people don't realize how much a dollar here, a few cents over there add up in a week. Under income for that day, write down exactly what money you get, like this: Paycheck $200 Under Out Go, write down exactly how much money you spent on that same day: Coffee $2.10 No matter how much or how little you spend, if you buy a newspaper for 25 cents, write it under 'Out Go'. After you reach day 14, add up both columns. Subtract your Out Go from your Income numbers. It sounds like a lot of work, but you are doing exactly what companies do every day - manage your finances. This is simple, helps you see where you are wasting money and where you can plan to pay off debt. $5 on a $100 debt will eventually eliminate it. But $5 a day on coffee when you are in debt is financial suicide. You can do this, it's simple and easy to do. What if you have an extra $10 a week left over? One week pay on a debt, the next week put that $10 in a savings account and don't touch it. It's yours to keep! Why I don't recommend the envelope plan for everybody? Because it's too easy to reach into an envelope with cash in it to pay for a 'want'. You don't 'need' that new gadget, but with the cash right there...it becomes a 'need'. Tracking every cent, you find out fast the difference between a ''need' and a 'want'.
3. Ok I'm a big Dave Ramsey fan but I don't think you need his kit to be on the envelope plan. First you need to have a budget. If you have that in place then just get yourself some regular envelopes or a cheap coupon holder. Label the different envelopes or sections Food, Clothing, Entertainment...etc. So then you pay everything with cash...if the envelope is empty then you are out of luck. Or you may need to wait a couple months to purchase something special. Have you read Dave Ramsey's book "Total Money Makeover"? I highly recommend it. Rather then shelling out the money for it (even if it is worth every penny) borrow it from your local library.
4. I don't know about the kit but $20 is not expensive if the guy is delivering what he says. Anyhoo..I personally like Howard Clark's website. Lot's of free info and a forum to ask questions about financial situations.
5. I first want to say congrads on starting on the dave system.. I just started about 2 months ago and have my 1000 emergancy fund saved and just starting my debt snowball of my bills.. About your question I beleive I read in one of his books or on his website that you can just take envelopes and label them for each catorgory and when you get paid divide the money into each catagory. This will only cost you about $4 for envelopes.. Make a budget if you havn't already and figure out how much you can make it on for each catogory and then stick it. Best of luck
6. A box of envelopes from Big Lots costs.....$1.99....have your kids decorate them and reinforce the edges with clear tape....
7. I just use regular envelopes and some markers for the categories where I use an envelope. You don't need the official envelope system to start his.