Unpopular opinion: Dave Ramsey's envelope system nearly cost me my emergency fund

I tried the cash envelope system for 6 months straight last year after a coworker swore it saved her from credit card debt, but for me it meant stashing $400 at home in a fireproof safe instead of the bank. When I had a surprise $650 water heater leak at 2 AM, I couldn't access my envelope cash until morning since the bank was closed and my debit card was froze from not using it. Has anyone else here had a budgeting method backfire because it made your money too hard to get to in a pinch?

3 comments

3 Comments

emma_dixon7021d ago

Respectfully disagree here. Keeping cash at home isn't the same as following the envelope system cause you're supposed to keep your emergency fund in the bank, not in a safe. The envelope method works for monthly spending categories like groceries and gas, not your rainy day stash.

kellys7821d ago

@emma_dixon70 So where do you draw the line between "cash stash" and "envelope money"?

the_richard20d ago

Ngl that's exactly why I keep emergency cash in a separate checking account, not a safe.