Dear Dave,
When you use the envelope system, what should you do with any leftover money?
Mandy
Dear Mandy,
My suggestion would be to carry it over to the next month. Lots of folks don’t use all the money in their clothing envelope during a month. There’s nothing wrong with letting a little extra build up in one of your categories if you don’t spend it all in a given month or two.
You should be hitting the budget pretty close each month on categories like food. Getting out of debt and managing your money wisely doesn’t mean going hungry. If you do end up with a little left over in the food envelope, treat yourself to a nice dinner out, or buy something that’s food-oriented.
But it’s okay to carry a few categories over from month to month. Just make sure you don’t get crazy and blow that money on something outside the intended category, or on stuff you really don’t need.
—Dave
Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 13 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.
