How-To Save Money Using Dave Ramsey’s Envelope System

how to save money using the envelope system


Let’s talk BUDGETING. Why? Because this will CHANGE YOUR LIFE. I am a HUGE fan of Dave Ramsey…if you haven’t read Total Money Makeover, go and get it now!!!! I’m super passionate about this stuff because it works! 

Step 1 to using the envelope system: Cut up your credit AND debit cards. Like for real. I KNEW how to eat healthy on a budget and even wrote a free report on how to save money on your grocery bill. I know this stuff! But when I went back through our bank statement, I realized that I used my debit card for $750 for just FOOD! Ahh! I was shocked!! That does include diapers and everything, but still! Ahh! 



how we saved $500 in one month on our groceries 


So I decided to FINALLY implement Dave Ramsey’s envelope system. I had read about it a few years ago but never implemented it. I guess that’s like buying a workout program but never actually opening it and letting it collect dust on the shelf. Sigh. 

Dave Ramsey says that finances is 80% BEHAVIOR and only 20% knowledge. You’ve got to do the work! So after I found out that I spent that much money on our food budget, I knew something had to change! No more debit cards for me–CASH ONLY. 

Step 2 to using the envelope system: Label each envelope with a different category. Some examples for each budget category are: groceries, dining out, gas, clothes, fun money, etc. Honestly, I only use one for groceries since I never buy new clothes and I’m super frugal with everything else. My splurge is always food lol. 

Step 3 to using the envelope system: Go to the bank and take out enough money for each envelope. So if your food budget is $400/month for groceries, go and take out $400 at the beginning of the month. **Side note: Some people get paid weekly, so if you don’t have $400 in the bank at the beginning of the month, don’t sweat it. Just take out $100/week. 

Step 4 to using the envelope system: STICK WITH IT. It’s really easy to be out and about and say, “Oh, I left the envelope at home, I’ll charge it just this once”. DON’T DO IT. Just once will spiral out and you’ll forget about this plan. You’ve got to plan ahead and know when you’re going to do your shopping. 

How has my spending changed since using the envelope system? If you’ll take a look at MY envelope, you’ll see that in OVER two months, I’ve only spent $169.70 on groceries. BAM. (sorry my hand writing is terrible lmao)



How have I been able to spend so little? Easy. I committed to eating what we ALREADY HAD in our fridge, freezer, and pantry, and only load up on the necessities. And when I did load up on necessities, I got cheap stuff! I’m talking oatmeal, lentils, beans, bananas, eggs, etc. You can get my free report to learn more about what foods to eat on a budget. 

Using Dave Ramsey’s envelope system will seriously make you SO much more conscientious of how much money you’re REALLY spending and help you stick to your budget. 

Try it out–let me know how it goes for you =) 




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