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The Envelope Method

A couple years ago, I read Dave Ramsey's "The Total Money Makeover: A Proven Plan for Financial Fitness." One thing he recommends is putting cash in separate envelopes for each budget category. I tried this, but the envelopes got very quickly got ratty in my purse. For a couple of months, I got a fresh envelope every time one became a little too worn for use, but eventually, I abandoned the system altogether.

Because I'm trying to focus on getting my debt paid down again, I'd like to go back to using the envelope system, but rather than use the envelopes, I've decided to use a coupon holder, which is much sturdier, instead. I bought one with a cloth cover several months ago when I first decided to give extreme couponing a go, and I found another last week that's all clear plastic.

At first, I planned to use the new one for my budgeted cash, but then my husband pointed out that because it's clear, everyone can see how much cash I have on hand. So I've decided to switch the two.

I hope that I stick with it better this time. While the hassle of constantly having to replace envelopes did play a role in my giving up on it, I know myself well enough to know that had I been more determined, I would've thought of a way to make it work back then.

I do have an added incentive this time, though -- my daughter. I want to set a good example for her.

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