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The Envelope System- A Practical Tool for Practically Everyone

The Envelope System is a budgeting method used to visualize where and how money is spent. This method, made recently popular by Christian Financial Educator, Dave Ramsey, helps users to not overspend and accrue unwanted debt. The system is said to help users make better financial decisions knowing that there is no back up credit card to cover frivolous spending. 

The way it works is by labeling envelopes with a name for each expense. Every month, when the paycheck arrives, the money is taken out of the bank in cash and immediately distributed to the designated envelopes. These expenses include monthly bills, yearly payments, savings for vacation, etc. When it comes time to pay the bill, the money is taken out of the envelope and used for it’s intended purpose. At the end of the month, any money that remains in these envelopes (i.e. food or gas), can be placed in savings or used for the following month. If the month is not over and the money has been used up, a choice needs to be made whether to take the money from another envelope or to wait for the next paycheck. The goal, as is with all budgeting systems, is to end up with a cushion of savings, to learn where the money is being spent and finally, to be financially free. 

Here at CBN Israel, we seek to build up the body of Messiah here in the Land of Israel. And one of the ways this is accomplished is by helping families in crisis to walk in financial freedom. We have recently discovered the envelope system including an on-line app making it easier than ever to help families learn budgeting. Here is an example:

In the upcoming weeks, we will begin hosting financial training seminars, introducing these helpful tools that we pray will be a blessing. We will also include gifts for those who attend these seminars such as purse-sized organizers to hold their envelopes. 

We would like to ask you to be praying for us as we plan for these seminars. Please pray:

   1.) For the Lord’s wisdom and guidance. Apart from Him, we can nothing. But through Him, we can do and give all that He is asking of us.  

   2.) That God would bring those who need to hear this message. 

   3.) For the Body of Messiah to be the head and not the tail, above and not beneath, victorious in all things including the area of finances. We desire to see believers become givers, self-controlled spenders, teachers of God’s ways and able to help others walk in freedom. 

Thank you for standing with us! On behalf of all the staff we pray, God bless you!

 

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