I read his total money makeover book and used his debt snowball method to get out of 7-8k credit card debt. This was at a time when I was fresh out of college and wasn't making much money. Now that I'm more financially responsible and make a higher income, I don't necessarily need his methods anymore but of course everyone should stay out of debt and live below their means.

However, I'm team using credit card for points/miles. Unless you're just absolutely terrible with money and have a huge spending problem.

I would be curious to know out of all the credit card sunshine pumpers who has actually used the cash envelope system. We used envelopes at one point (CC now) and I'm fully convinced the research behind increased spending on CC vs cash is real. Not pot banging on CCs since we use one but unless you've done both I think there is a little ignorance in the estimation of yourself.

For whatever it is worth, I was making a fairly large purchase at a retailer and tried to negotiate a cash discount. They pushed back and said no and eventually said "we won't do a cash discount because we don't want to encourage people to use cash. They will spend more if we give it to them on credit".

That said I find it goes both ways for me. It's easier for me to spend $2 here, $5 there without thinking if I have cash, but a lot easier to spend $200 here, $500 there if I use credit.

Back on the original topic, I think Mrs. Horrible and I would have a much tougher time with money if we didn't use Dave's principles. Using that framework is much easier than trying to figure out every little detail as we go. I count us lucky that I can count the number of money fights we've had on one hand.

Humble brag:

I'm not a fan of DR although I understand he means well. I would've never taken a risk and/or leveraged by starting my own company if I followed DR. Fast forward 17 years later after a long journey I have sold business A allowing business B to have to passive income.

Cheers!

Makes sense to me that the cash envelope / limit would decrease spending

I don't like the zero credit theory
& I just increased a credit line yesterday

"So you have 36k in credit card debt and another 200k in unpaid student loans?"

"Yes, Dave."

"And you just spent $690 on soap called Sydney Sweeney's bathwater?"

"That's correct, Dave." https://t.co/QUidm1XZaa pic.twitter.com/P8x5MbXhFW

— Flappr (@flapprdotnet) May 29, 2025