Dave Ramsey's 'Envelope System' - How To Digitally Recreate It

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[driftertravels]

This is even more relevant now because of the COVID-19 pandemic and the move towards cashless economies and the use digital wallets. You should update or re-post this video.

[terry_moorer]

Great video! I have multiple prepaid cards and debit cards with little stickers on back of cards for each categories. I only carry the three main cards with me everyday (groceries, gas, dining out) and keep the other cards at home (medical co pay, gifts, etc).

[giselleotto]

The problem with this idea is that you can only do six transfers a month from each savings account. It may seem like a lot but it's really not if you're transferring consistently

[MshChris]

I've already been using this system with my bank. It's waaay better than an envelope system. I currently have savings for my sons' swim classes, and vacations. Because I go to Bjs to get gas, I dont have a savings from there, It just comes out of my account. I've learned not to be literal about certain things and to focus on the mindset.

[TheYoungWolf]

Awesome! Thanks Dan! My Family needs this in a major way. We get paid and it's like we are rich for 5 days ha ha. People say they live pay check to pay check. We live a week before pay check to pay check. We need this course bad!

[dyrfullymade]

you can also do this with digit, qapital, and simple Bank

[shawnmulligan]

I went through the same process - love the envelope method but was spending 1/2 of my Sat's managing all the cash (trips to the bank, stuffing envelopes, paying back envelopes) and found it a hassle. One of my local credit unions allows for many, many savings accounts and has no limit on transactions. I have 20 savings accounts - one for each budget category. My payroll check is deposited into my primary checking. I figured out my budget categories for the year for each category. For example: $40 haircut every 6 weeks = about 8 haircuts per year = $320/year. Divide that by 26 (number of paychecks) which equals $26 per paycheck. Therefore, every paycheck, $26 is transferred to the "Haircut" account. When it is time for a haircut, the cash is there. All budget categories get a transfer deposit with each pay check. Every other Saturday I reconcile everything by "paying back" my primary checking. If I overspend in a category, I put a freeze on that category until it is paid up. Every entry into my checkbook gets the budget category added with a box next to it to check off when it has been reconciled or paid back from the budget account. I pay a lot more attention to my cash and my cash flow by attending to the reconciles, etc. every 2 weeks. My rules: #1: I am honest with myself, #2 do not cheat by borrowing from other categories #3 re-evaluate as needed #4 Pay raises do not go into a category but into savings. Wish I had known all this in my 20s and 30s. Good luck!

[markhines]

Why not use a credit card with the cash envelopes? Every time you make a purchase with the cc get a receipt. Then when you get home just transfer the cash from the appropriate envelope to an envelope marked " credit card". The convenience and safety of credit card. While still using cash envelopes. No managing multiple online accounts.

[violetembers]

Don't you have a cap on how may times you're allowed to remove funds from savings every month before they close your savings acct? I have a 360 acct and they give me a cap of 6 transfers a month.

[Lynda]

essentially - "get this credit card that lets you do it - then buy my $27 course for me to tell you how"

[michaelshort]

I use YNAB, the categories in YNAB are akin to the envelopes in Dave Ramsey's system and I just have 1 checking and account and one savings account. Most of my money stays in the savings account where it can generate the most interest and a small amount goes into my checking account which has a single card. :)

[budgetnthangs]

I use Capital one 360. They do have physical atms in certain locations 👍🏽👍🏽..Awesome way to do it. I actually combined sinking funds. I couldn't stand looking at so many accounts. I deposit money once a month. 👍🏽👍🏽

[AndreaS]

Use Ynab. It is this idea but a lot simplier and everything is set up already. I have used it for over 3 years and I love it.

[makeithapn]

I wish I had seen this before I arranged to have multiple debit cards to use the DR envelope system using debit cards...and I have a Capital One credit card. Great idea!!!

[MyHoh]

That is cool. I do end with a lot of change. TFS

[coco_munroe]

Don’t you have a limit a month of transfers?

[bekayezme]

Oh yeah. I do not like going to bank or ATM to withdraw money and I surely do not want to carry a ton of money on me either. I use every dollar to make a budget and I have a budget planner where I write transactions for each category I spend, but all my money stays in my checking account. I still know how much I have per my paper budget per category and it's so much easier.

[Arizona_lilly]

I want to do this for my small business always keep money on me for using it and buying so I can track better. and pay my self out Important. adding cash and being able to see the change

[msdeedee]

I have been doing this with my Credit Union for about 2 years. I am afraid to carry around all that cash.

[OwolabbyAzeez]

Can you only do this with a Capital One card or can this be done with other bank/cards?