Envelope System -- Free Template!

(photo by Kelleigh)

Do you use the envelope system?  Basically, you set up envelopes for the categories of items you can pay cash for say gas, groceries, and eating out.  The theory behind this is that cash in your hand is harder to part with and better yet, it makes it simpler to stick to your planned budget to have this money earmarked.

Today I came across this tutorial to make your very own customized envelope system for your wallet.  These are so pretty!  I can't wait to print these off and make some of my own.  I also think these would make a great gift paired with Dave Ramsey's Total Money Makeover book.

This system has really helped us cut down our grocery budget!  You can read more about this at Dave Ramsey's site.  While you're there, check out the baby steps toward financial freedom.

Thanks to Kelleigh for creating these and being sweet enough to share them with us. =)

Also thanks to Money Saving Mom for sharing the post. =)

Our Money Makeover **1.11 update

While I posted a link to the 7 baby steps, in retrospect I decided that was a little lazy of me. How are you supposed to know how we are doing if you don't know what we are doing? Everything always looks different in retrospect.

Here are the steps:

$1000 set aside as an Emergency Fund
Done! As of 1.9 we have $1500 put back.

Begin paying off debt using the debt snowball
My personal debt stands at $6421 minus student loans. I honestly don't remember how much I owe. I think just another $2000 on those, however they are in deferment while we are in school, and we stay on top of the interest payments. My husband is wanting to file bankruptcy on his debt. I'm hoping to use my payments as incentive to him to snowball his debt as well rather than file bankruptcy!

Increase Emergency Fund to cover 3-6 months worth of expenses

Invest 15% of income toward roth IRAs and pre tax retirement

Set up college funds for the boys

Pay off house early
We owe another $29,000

Build wealth and give

As things are paid down and off, I will continue to update our progress at the end of each month. Our snowball fund is pretty low, but I'm sure with progress and a little grace, I'll be pretty suprised at how much we were able to accomplish at the end of the year!

2009 Financial Goals

With the beginning of 2009, I thought what better time than now to start building our financial future!

We are beginning the 7 baby steps this month using Dave Ramsey's Total Money Makeover system, and I am transitioning to an envelope system like this.

I also bought the boys Financial Peace Jr. for Christmas. This Dave Ramsey program is tailored for kids age 3-12. My husband was a little skeptical at first that the kids would get it, but they have been doing well with their commission sheets. They also really enjoy listening to Junior's story on cd.

The first night the 3 year old put plus signs beside each of his duties to show that they had been completed and erased the fines area. Not exactly what we are going for, but it just shows that he does understand.

I invite you to explore Dave Ramsey's site and evaluate if this program is right for your family. If so, feel free to join us on our journey to become debt free as we learn to live like no one else. I'll post each month as we progress along.