(Please keep in mind while reading this review that I have the Deluxe Envelope System that was included in my Financial Peace University Kit. It is the same system, but it appears the links on Epinions will take you to one that is leather bound and the front says "Beat Debt and Build Wealth", whereas the front of mine simply says "Envelope System".)

I don't know about you, but if you have tried to stick to a budget in the past and found yourself wondering "where did all the money go" THIS is the solution for you! It is straightforward, easy to use, and organizes your cash simply. The hard part is the discipline to use only what you put in! Any information you need about the Financial Peace program can be found at www.daveramsey.com. I HIGHLY recommend this program, whether you are in debt or financially secure.

The Envelope System is a small, hardback book a bit smaller than a business-sized envelope (approximately 6.5"x4" on my ruler). There is an elastic strap on mine that wraps around the front of the book to help keep it closed. The pages inside are spiral-bound. The first page explains how to use the system step-by-step and the second is a sample sheet of how to use the ledgers, just as you keep a running total in your checkbook going down the page. The next pages (six total in my system) are envelopes, with the word "category" at the top and a space for you to write what you will be using that section for. At the top of mine, I use Groceries, Gas, Entertainment, Restaurants, Babysitters, and Misc. because those are the categories I use cash for. I keep any of my personal money or "mad money" in my wallet, separate from the system so I'm not tempted to use any of the designated money for other things.

Under each category heading you will find a ledger for that category. It is separated into four columns: Date, Where, $ < >, Balance. This allows you to put your beginning amount and subtract from it as you spend from that envelope on the designated category. As you turn the page, the ledger continues on a flap, which opens to reveal the opening to that envelope. The ledger continues on the envelope too, so you have plenty of lines to keep a running total.

After the sixth envelope, there is a clear plastic pouch with a slide zipper. You could use this space for spare change, coupons, or receipts. Behind the pouch are extra ledger sheets (there are four in mine).

Inside the front cover of the Envelope System is a "pocket" with extra envelopes (there are four in mine). You can also purchase extra envelopes from the website (www.daveramsey.com). Printed on my pocket are the six "Baby Steps" to financial peace that Dave Ramsey teaches in Financial Peace University. On the back inside cover are four general steps to Financial Peace: Save Money, Limit Your Lifestyle, Dump Debt, and Have a Written Cash Flow Plan, with a brief detail under each roman numeral.

My husband and I started using the envelope system in November, and it has made an unbelievable difference in how we spend. My husband gets paid every two weeks on Fridays, and we sit down on Thursday nights and put our budget for those two weeks in our computer. Then we figure out how much cash we need for our Envelope System and write a check for Cash. We figure out exactly how we want it broken down ($20s, $10s, etc.) and on Friday I take that to the bank and cash the check. I allocate the money for each envelope exactly, and ONLY SPEND what is in the envelope for the designated thing. By doing this, I don't spend more at the grocery then I planned because I know how much cash I have to spend. We've become very disciplined using this system, when the cash is gone we stop buying! When the "restaurant" category is gone, we don't eat out. When the "entertainment" category is empty, we don't go to the movies, etc. We always budget for these things, and if there is a month that something comes up that we need extra money for, we just put zero in entertainment, babysitter, etc. and stay home.

The longer we use it, the better idea we have each pay period of how much we need for each category. Don't be discouraged if it takes a couple of months to get it right! The key to making this work is discipline!!!! We still do the things we did before, just not on a whim and only if there's money in the envelope for it! And once you know where the money is going, it's amazing how much you can relax about your finances. It's helped my husband and I both to evaluate where we really want to spend our money, it's given us the opportunity to save more, and most importantly, we never fuss about who spent what anymore.

If you are trying to find a way to stay on budget this is definitely the way to go! And if you need help doing a budget to begin with, I can't say enough about Financial Peace University as a whole.






Recommended: Yes