Does the Dave Ramsey envelope system really work?
I know a lot of people love the Dave Ramsey envelope system. To be honest, I’m not sure he came up with the idea. Perhaps he’s just the one who made it “famous.” Either way, it certainly is a hot topic these days.
My mom first taught me about budgeting money when I was a kid using envelopes. My allowance would have to be split into envelopes so I would get the hang of managing my money. From day one it annoyed me so I never stuck with it.
I currently put everything I can on my credit card and
pay it off every month
. I love credit cards because I can see where my money went each month, I pay one bill a month, and I get airline points. Bonus! Again, the catch is that I never, ever leave a balance on the card from month to month. That’s like buying a sweater on sale for $20 but paying $100 for it.
So, to my original question…do you think the Dave Ramsey envelope system works? Why do you think so many people swear by it? I’d be curious to hear your thoughts.
I a Dave Ramsey fan, but I also use a credit card for points and convenience. I actually blogged about why the cash envelope system didn’t work for our family: http://inzolo.com/blog/why-the-cash-envelope-system-didnt-work-for-us.php