The Envelopes system long existed (my grandmother was already using it) but it was Dave Ramsey who popularised it. It works on a very simple concept: every dollar you have must serve a purpose. Let me explain how this can help you manage your finances (without the need of a financial advisor, of course).

How does the Envelope system work?

Every dollar you have must have a purpose. Take your money and put them into separate envelopes, with each envelope serving their own purpose, say groceries. How much money you put into each envelope depends on how much money you budget for that category of expense.

When you need the money, say for grocery shopping, take it out from that specific envelope, and spend it. If you find that you run out of money, find other ways to survive.

But if you find yourself in this scenario too often, your …