How To Set Up The Dave Ramsey Cash Envelope System & Fill Your Envelopes


hey friends at welcome to freedom in abudget. I’m Kelly and today we are talking about the cash envelope system this isme everything that you need to know about the catch em elope system I’mgonna answer all your questions it’s super super easy so many people try andcomplicate it and they don’t understand it I didn’t understand it at first butnow I do now I love it I mean doing the casual system for 3 years now3 I think about 3 years so it’s really really helped control your spending sothe theory behind is with the cash envelope system that DMC teaches is whenyou were spending with cash if you feel it more when you’re spending spendingwith a card and swiping and even just the tapping pay on your phone with likesamsung pay and Apple pay you really aren’t feeling it you’re not feeling thepressure you’re not feeling just the cold hard cash but when you are havingto hand over 20 or even more you’re feeling it you’re like huh no like thisis mine I worked hard and it really just changes your thought process of holycrap I okay I’m gonna

I’m gonna stick to my stick to my budget and also it reallyhelps control your spending so what I do is when I go to the grocery store orother places like that I leave my debit card at home I don’teven take it with me so if I have 50 dollars to spend in my total comes to 51dollars rather than me like yeah it’s okay it’s an extra dollar that’s that’sno big deal no I’m putting something back like I’mlooking at what’s on the line and I’m like well alright ice cream instead ofgo we gotta cut that or only one thing of something rather than two or three sojust really cutting your expenses really just zoning on what is necessary andwhat’s not so just the psychological reason how has changes your thoughtprocess it’s it’s just a game changer so I personally fill my cash envelopestwice a month I fill them at the beginning of the month and then at the15th of the month and that just helps me a lot of people say that I don’t want tocarry too much cash around edge too much but if my wallet gets stolen totally getit if that’s the case and that’s your fearthen fill them once a week fill them you know every couple days or only take cashout when your me going to the store so maybe have yourcash elopes at home and then you’re running to Publix you’re running to Aldior whatever the store maybe then you take your cash out just for thatshopping trip and also guys no one knows how much is in your wallet so when theysee this this could be full of cards this could be full cash this could befull of nothing coupons who knows they don’t know that this is cash analyst init they don’t know just looking in

my wallet that I do the cash evelope systemso yeah I understand that you may feel more uncomfortable carrying cash but ifsomeone’s gonna steal your wallet they’re gonna steal your wallet andhonestly to me I’d rather have someone steal $20 after my wallet didn’t have togo through dealing with them stealing all of my cards and all of that and justgetting replacements and all that so it’s just changing your thought processof that and I’m just gonna break it down super easy of how I fill my cash em lipsso here is what I do I personally filled three cash envelopesI do grocery eating out and pocket money and so this is just breaking it down sofor groceries I spent this is just for two weeks two weeks not the whole monthfor groceries I spend $100 every two weeks so $200 forthe month for groceries eating out it’s $50 and personal spending money is $50for total of 200 and then when I go to the bank I just give them a little postnote with what I want or some of them Salima just do cash back at the storeand I tell them okay for this breakdown I need eight 20s which is $160 twotenths which is $20 two fives which is ten dollars and ten ones which is tendollars which equals two hundred dollars so they match exactly then I have mylittle savvy cents wallet here guys this is

I love this quality this is thesecond savvy since wallet I bought the other one was amazing as well it waslike a teal chevron pattern and it was still an amazing condition still greatcondition after three years but I had just been looking at this Burberry printfor so long that I just I used some personal money and I bought it so it hasa section here for cards I have some Costco cards here then this iswhere I keep my debit card here then I have Leandra the boy that we sponsor andthen my license here but I took that out so that you guys don’t steal my identityright so then it has these awesome sections and guys I’ll have an Amazonlink to this down below as well so it has these great sections that have theselittle dividers so this one is grocery then we have entered restaurants oreating out and then entertainment I don’t call energy my just call it pocketmoney so they all have those dividers so what I’m gonna do is take my cash andI’m going to stop them so the first section is grocery that is a hundreddollars for the two weeks so twenty forty sixty eighty one is and this justgoes behind grocery right here next section is eating out this one here orrestaurants and this is gonna be fifty dollars and this I kind of break thisone down a little bit because for restaurants

I like having I like havingones and singles and fives and stuff just to make it easier with tipping andthis nut and since I’m hang with cash it’s easier just to leave them you knowtwelve dollars versus getting fifteen and then having to get cash back orwhatever it is so for restaurants it’s 20 30 35 40 4142 43 44 45 46 47 48 49 50 50 dollars for restaurants and that goes right inhere and then entertainment is right herethis is $50 so 20 40 50 and that just goes right here and then there’s twoother sections back here now you can do five cash envelopes you can do for youcan do three you can do however money you want there are other like subdividers too so if you want to have ten that’s totally fine but what I do is Ihave this section – right after entertainment and personal this is whereI keep my receipts that are not logged so they haven’t been logged in my budgetyet and then I love every purchase in my book you guys see my monthly budgetreport cards and my budget my Excel budget template so I walk everything ifI spend $75 at a vending machine I log it in my budget so this is where all mynot logged receipts go and then this is where all of my log receipts go and andthen this is more categories if I want to add them so that way I keep track ofeverything and it is cleared out because it is the beginning of the month so Idon’t have any receipts that I have to log so I do that and then also anotherquestion that I get asked a lot is change what do you do for you change howdo you figure that out and

I just put my change all in the same section like justI just put it all in the same cash envelope or in the same envelope I don’tseparate it out per category like if it’s five dollars and 37 cents I don’tput the remaining change in that category I just put it all in the middleand then when I can I pay exact change so if I’m gonna do store and it’s youknow 1292 I give them 92 cents out of here so that way it just keeps down onthe change and I feel like it keeps more dollar bills in your wallet as wellwhich is awesome so guys this is the cash envelope system it’s not hard it’sso easy I absolutely love here is how it looks so easy to justpull the cash out for whatever category you have and keeps it so simple and thenguys you ready for this when you’re you know just just going out you know youdon’t want to bring your whole purse or anything it has this and it has a littlelanyard so you can just bring this and you are good to goI love this one guys absolutely love it so this is the cash envelope system thisis savvy Sims wallet let me know if you have any questions I would be happy toanswer any questions for you guys all right I will talk to you later bye


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