How “Cash Stuffing” Works (Aka the Envelope System) (Hour 1)
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What is the envelope system and how does cash stuffing work?
Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. We help people build wealth, do work that they love, and create actual amazing relationships. Christina Ellis Ramsey, personality, number one bestselling author, is my co-host today. She and I will be answering your questions about your life and your money. It's a free call at 888-825-5225. That's 888-825-5225. Rebecca's with us in Flint, Michigan. Hi, Rebecca. Welcome to the Ramsey Show.
Hi, Dave.
How can firing clients help grow your business?
Thanks for taking my call. Sure.
What's up?
um sorry i'm a little nervous it's okay you'll be all right we've never lost a patient um i've been grooming for 12 years now and uh been doing mobile grooming started my own business six years ago during the pandemic in 2020 i shut down and was going through um a rough divorce and moved to be closer to my support system and my family. Um, when I reopened, I kept my old client, some of my old clients, um, but it's time to let them go. My business is booming and I have people waiting to get in with me. Um, I just don't know how to let them go without, um, without disappointing them and without leaving myself open to caving in. So I can see myself telling them, hey, you guys have me till June.
What are the challenges of moving overseas for work?
After June, you're going to have to find another groomer. And I'm going, we'll pay you more money. We'll do whatever we can to keep you when it just needs to be a severed tie. So I'm calling Dave to see if you have any tools or advice.
on how I tackle that. What's going on with the old clients? Why do they need to be severed? Too far away.
It's nothing to do with them. They're good clients.
How does viewing investments as a filmstrip change your perspective?
They're an hour away. So now I'm within 20 minutes of home. I have a kid in school. So once a week I'm driving an hour. I'm grooming all of them. They're fantastic on keeping their appointments and that. It's just, it's the drive back and forth when I could be making the same amount of money if not more close to home.
Well, and you're also losing all that time, which is important. Even if you got paid for it, it's still not the way to live your life.
Exactly.
What should you do when a parent refuses to pay back a Parent PLUS loan?
That's why I don't want to leave myself open for money.
Yeah, here's the thing. It's a very simple thing. You just say, it's too far a drive. After my divorce, I moved, and I'm way away, and I'm not able to do clients anymore that aren't within this range. Oh, well, I want you to come anyway. I'm sorry. I just wish I could, but I can't. Well, I'll pay you double. I'm sorry.
How can you effectively say no to clients?
I just wish I could, but I can't. And it's just no is a complete sentence, Rebecca.
Yeah, it's getting that no. I've been grooming for them since I was in my early 20s, so it's hard.
I don't care. I mean, you outgrow things. Things change in life. And if their life revolves around their dog groomer, they need to grow a real life.
Well, Dave, should there be the option for them to drive to her?
If you want to do that, that's fine.
What are the emotional impacts of spending cash versus credit?
I thought about that. That kind of puts a wrench in things because if they're late or don't show up, now I'm trying to find someplace to groom from. The whole point of being mobile is convenience for the client. I show up and groom your dog. Yeah. So you don't want to do it.
It doesn't make sense, you know. And so, you know, we had a lady that cleaned our house and her husband moved to Oklahoma and she wanted to go with her husband. So she can't clean her house anymore because she's not going to come from Oklahoma to clean her house. And, you know, she's a sweet lady.
Why is it important to manage your spending behavior?
She's been with us for years. We love her. She's like a family member in a sense, but she's not a family member, and anybody with common sense knows that you're not going to come from Oklahoma to Nashville to clean a house. It doesn't make sense. So that's the same discussion. It's just, you know, you're going to have one or two that are unreasonable emotional people, but that's just because they're unreasonable emotional people, and you're just going to have to say I can't do it.
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Chapters
8 chapters
1
What is the envelope system and how does cash stuffing work?
0:27–1:16
2
How can firing clients help grow your business?
1:16–2:19
3
What are the challenges of moving overseas for work?
2:19–2:43
4
How does viewing investments as a filmstrip change your perspective?
2:43–3:13
5
What should you do when a parent refuses to pay back a Parent PLUS loan?
3:13–3:36
6
How can you effectively say no to clients?
3:36–4:07
7
What are the emotional impacts of spending cash versus credit?
4:07–4:40
8
Why is it important to manage your spending behavior?
4:40–39:30