Thursday, January 7, 2010

The Envelope System "Prettified"

My mom sent a link to this "Prettified" envelope system to me yesterday and I thought it was an awesome variation to our Envelope system, especially for scrapbookers! We follow Dave Ramsey's Financial Peace plan and I can truly say it gives you peace. Matt and I started taking the class the 2nd or 3rd week we were married and have followed it ever since. We started off with $70,000 of school debt, and we have paid off almost half of that in three years. We should be debt free in no more than 5 years from now! So exciting! Following the plan has saved us from many arguments that I'm sure would have happened had we not been on the same page.

We have cash envelopes for the following:
  • Food
  • Gas
  • Rent
  • Gym membership
  • Entertainment
  • Blow Money (serves no purpose other than what you want to spend it on)
  • Car Repairs
The rest we put into the checking account to pay for bills. But every single dollar has a name and purpose.

Here's a portion of an article from Dave's website with some tips to get you back on track with your money:

Sit down and evaluate.
Take a few minutes to look at your bank accounts and really understand what you see. If you don't, you run the high risk of living these next few months like Gomer Pyle on Valium, with no clue about your money. You don't want that, do you?

Update your game plan or start one for the first time.
A budget is your game plan, where you tell your money what you want it to do. This isn't rocket science! Just give every dollar a name on paper before you get your paycheck so it won't all be gone in a week. Get free budgeting forms here.

Put cash in envelopes.
Since you spend 12-15% more when you use plastic than when you use cash, try the envelope system. Take some envelopes, write the budget categories on the envelopes, and use only the allotted money to purchase specific things. If an envelope is empty, don't buy anything else in that category for the month. It can wait.

Set boundaries for yourself and your family.
A lot of this centers around the ability to say the word NO and really mean it! Sometimes you're going to have to tell yourself, your spouse, and your kids "NO! It's not in the budget!" so be prepared. It's a phrase you'll be glad you know how to say.

Commit now to making your budget a priority over the next few months. Just by incorporating these seemingly small changes into your daily habits, you will reap many rewards in all areas of your life. It's time to get back on track, and we're here to help you along the way!


  1. I love this!!!! I ran and made one for myself as soon as I saw yours! Thanks!

  2. Caren - so glad that it inspired you to make one! How did it turn out?


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