Instapundit links to this article on budgeting and Dave Ramsey’s budgeting process. Since my wife and I are in our second month of the budgeting process, I have some thoughts about the article I wanted to share.
Yes, the envelope system is constrained, but Dave only suggests that for certain categories. Things like groceries and eating out are two excellent categories for envelopes for example. But a lot of categories aren’t suited to the envelope system. My wife and I are doing a budget every four weeks. We do the budget in pencil because we have to make changes. Within 15 minutes of making our last budget, we came up with a list of three things we hadn’t included. We’ll be revising the budget to handle those. We can always rearrange our budget to handle unexpected events. Dave Ramsey’s budgeting process isn’t as constrained as the article would have you believe.