There are several ways to manage environment variables in Ruby applications, including using simple command-line exports, loading credentials into the environment from a configuration file, and leveraging third-party gems like Envyable, Figaro, and Dotenv. While each approach has its own strengths and weaknesses, the most effective solution involves combining elements of these methods to create a robust and maintainable system for storing and managing sensitive information. By using a standardized approach to load environment variables into the development environment, developers can improve their productivity and reduce errors related to credential management.