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Dave Ramsey says: Move leftover money in envelope budget system to next month


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 OK 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

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