Envelope budgeting system - does anyone use it?

juicygirl

I've read a bit about Dave Ramsey's envelope budgeting system online. It all seems a by complicated with so many envelopes and I'm abut worried about having all that cash in the house. However, at the same time I feel using a debit card definitely makes me a bit frivolous.

Was thinking of giving it a try but starting with groceries only.

Any thoughts or advice?

The-Truth

Why not just open another bank account. Use one for bills & one for disposable income. If you want to separate Supermarket shopping then use a third. Use a spreadsheet to work out what you have coming in & how much money should be in each bank account and set up standing orders so each account has the right amount of money in.

alanq

Thread on this topic from the end of last year.
https://forums.moneysavingexpert.com/discussion/5071080

Anthorn

juicygirl wrote: »

I've read a bit about Dave Ramsey's envelope budgeting system online. It all seems a by complicated with so many envelopes and I'm abut worried about having all that cash in the house. However, at the same time I feel using a debit card definitely makes me a bit frivolous.

Was thinking of giving it a try but starting with groceries only.

Any thoughts or advice?

I'm the opposite, as soon as I break into a £20 note it's gone and my debit card encourages thrift. Looking at free options of accounts, only as examples, Nationwide allows the opening of several savings accounts and the renaming of them. Similar to envelopes. An alternative might be a credit union jam jar account which splits your income into several jam jars to pay regular bills and pays what's left to your credit union prepaid visa card or into your bank account by BACS. Just a couple of examples in a sea of alternatives which is better than keeping cash in the house.

elsien

I use it. Not for everything, but I get a set amount out of the bank every week. Then I put a bit aside each week towards different things. At the moment there's the birthday pot, the garden, hair cuts, clothes, dentist, window cleaner, various others. Then what's left is the food and social money for the week.
I know you can do the same thing with apps, bank accounts, etc, but real money works best for me. Spreadsheets are too much faffing around and I don't get round to updating them and lose track.