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This article will detail five actionable ways that you can skyrocket your success with Dave Ramsey’s Essential Cash Envelope System!
Now, if you have not already watched the video that goes through Dave Ramsey’s Cash Envelope System, watch the video below so you can better understand how it works!
My hope is that you already have a basic understanding of how the cash envelope system works and you are wanting to dive deeper using this system. You want to be prepared and to have great success!
If that sounds like you, let’s keep reading!
These are the five specific ways that you can create ultimate success using Dave Ramsey’s Cash Envelope System!
- Be Prepared for Failure (At First!)
- Practice With Cash ASAP
- Practice Budgeting for 3 Months
- Get Your Family Involved
- Find Your Motivation
1. Be Prepared for Failure (At First!)
Yikes! I totally understand that you might find this first tip a bit off-putting!
However, let me explain! The cash envelope system is an entirely different way to spend and manage your money.
We are all conditioned to quickly pull out a debit or credit card, and many of us are not used to fishing through cash to find exact change.
This is the basis for why you should be prepared for the Cash Envelope System to be hard at first!
Creating new habits takes time. In fact, establishing any new habit can take around three months or 90 days just to make it more of a routine.
If you are going to try to take Dave Ramsey’s Cash Envelope System seriously, it can be really tempting at first to still use your card!
Imagine going to the grocery store or getting gas for your vehicle. It takes extra time to find exact cash and could be an extra burden when you’re at a gas station.
In addition, as of 2020, many more stores have been stopping their use of payment with coins, which can make it difficult to pay in exact cash payments!
With these points in mind, it is important to set yourself ut first p knowing that it can be difficult to follow the Cash Envelope System but also knowing that is completely possible!
2. Practice With Cash ASAP
The second actionable step to take is to start practicing with cash as soon as possible!
If you are researching Dave Ramsey’s Cash Envelope Method for tips and ideas, you may not have a budget yet. However, the best step you can do is to start using cash as soon as possible!
This is all about exposure and practice. If you are new to the cash envelope method then you still are learning about money, budgeting, personal finances, and so forth. Paying for everything in cash may be a big lifestyle change!
Here are a few ways to easily practice the cash envelope system:
- Pay for your next coffee with cash
- Buy your lunch using cash instead of card
- Pay for your next family outing using only cash
I can almost guarantee that the next time you go get gas, for example, that it can be hard to resist using your card. I cannot deny that it is simply easier to just swipe your card and move on!
However, keep in mind the reason you’re trying to use cash in the first place! The whole point of using cash is to associate spending money with a negative emotion or a negative experience. We don’t “feel” that negative experience nearly as bad when spending money digitally, using card, or online!
It is much easier and quicker to overcome your spontaneous spending or when you really need to stick to a budget, if you’re using cash!
3. Practice Budgeting for 3 Months
A helpful tip that you can put into action if you are starting Dave Ramsey’s Cash Envelope Method is to practice budgeting.
Not just that, but it is recommended to practice budgeting for at least 3 months. The entire point of the cash envelope system is to help you spend less and stick to a budget. However, many people immediately restrict themselves to a strict budget, using cash, and very quickly burn out!
That’s why it is commonly recommended to have a budget for 3 months at least prior to going “full force” with your cash envelopes!
These 3 months will give you enough time and experience to really know how much income you bring in and how much you have in expenses each month.
There are plenty of ways to save your cash, watch your money grow, or to create budgets. Here are a few FREE apps I’ve used that I recommend:
- Personal Capital: This app is FREE and a fantastic way to track your budget, investments, and money. I’ve used it for countless years and continue to love it!
4. Get Your Family Involved
Let’s say that you have been doing your research into using cash envelopes and want to make a difference in your family’s future with this method.
However, your family may not be on board with this new idea.
This may be even more difficult if you have teenagers or your spouse is not interested in using cash. As mentioned above, using cash for all expenses can be a burden!
However, it is so important to consider your family’s opinions if you’re going to be doing this system. Make sure that the rest of your family wants to be involved and actively understands the purpose of why you are wanting to use the cash envelope system!
Or, consider modifying the cash envelope system. You may allow for card or digital payments for only a few specific payments, for example!
5. Find Your Motivation
The last success tip to know in order to have a great experience with Dave Ramsey’s Cash Envelope System is to find a source of motivation to keep you going!
This sounds easy enough, but it is critical to consider! Like any diet, exercise plan, or new habit that you try to form, all it takes is one slip-up and you quickly spiral back to your previous lifestyle.
To make sure that you’re always motivated, consider one of these handful of ways to keep focused!
- Subscribe to YouTube channels like this one that help you stay motivated!
- Start your own Instagram, TikTok, or YouTube account to document your progress
- Find an accountability partner to keep you on track
- Find other channels or profiles of people who are doing cash envelopes and follow their journeys
- Use envelope binders, printable trackers, and other fun visual guides
Summary
The Essential Cash Envelope System is a fantastic method to stay within budget, save money, and practice discipline with your spending!
However, it can be difficult at first and may be hard to stay motivated. These 5 success tips are the best place to start in order to have a great experience with using cash envelopes!