![]() Once your groceries are rung up, the total is $150. You move the 300 dollars over to the card, and you’re ready to go. While the cashier rings up the person in front of you, you pull out your phone and select your grocery qube. You have a cart full of food, and you have $300 allocated for your groceries for the month. ![]() To illustrate how this works, imagine you are standing in line at the grocery store. There are no overdrafts, so the transaction will be declined if there are not enough funds in the allocated qube to cover the total. Much like a physical envelope, if you don’t have enough money within a qube, you won’t be able to spend the money. The data then updates, and you see your new remaining balance. Instead of using real physical envelopes to distribute the cash, you divide up your checking account into individual “qubes,” which you can think of as sub-accounts of the primary checking account.īefore making a purchase using the Qube Money check card, you select which envelope you want the transaction to pull from and proceed through the transaction. Qubes are the digital envelopes that you allocate your money into each month. Basically, it’s the cash envelope system for the digital age. Their technology allows you to spend money from each envelope (they refer to them as “qubes”) digitally. Qube Money is unique in the budgeting sphere because it combines the power of digital envelope budgeting with the convenience of online/digital banking. Before we get into the details, let’s learn a little more about each company to compare them and finally see which product is better. ![]() Their product is the answer to those who want to stick with a strict envelope budgeting system but want to leave the cash behind. Qube Money is the new kid on the block when it comes to budgeting. It’s also cumbersome to track where you spend money unless you keep very detailed records and save receipts. While this is undoubtedly a surefire way to prevent overspending, there is typically one complaint that many have shared: managing the cash and having to carry it around can be quite a hassle. If you are very disciplined, you won’t borrow money from one envelope if you overspend in another. Once the cash runs out for any particular category, one has to wait until the following month to refill the envelope before spending any more money. The cash is then physically divided into each budgeting category (groceries, gas for the car, entertainment, etc.). When using a physical envelope budgeting system, one goes to the bank in person and withdraws all of the cash needed to cover their budgeted expenses for the month. Have you ever struggled to stick to a budget? For those who struggle with sticking to their budget, a physical envelope system is a more rigid and literally tangible budgeting method. Envelope BudgetingĪmongst the many premium budgeting services available, You Need A Budget (YNAB) has established itself as a favorite within the personal finance community.ĭespite the success that many have had with YNAB, we’ve had readers write in and ask for help because they are still overspending despite having a solid budget in place. Needless to say, an unplanned expense or unexpected decrease in income is enough to shatter any sense of security. Actually, you probably don’t need to imagine it at all, because that’s how most people do it. ![]() It’s not hard to imagine how one could effortlessly spend their entire paycheck and then wonder where the money went at the end of the month. Every single dollar has a purpose.īy creating a game plan for every dollar, you can ensure that you are also allocating money towards debts and savings instead of simply creating more debt to cover growing expenses. Instead of reacting to expenses as they arise (or as they are created), budgeting allows one to make a plan for each earned dollar ahead of time. While the reasons are complex and beyond this article’s scope, budgeting is a tried and true method of establishing solid financial footing. Despite having an education and ample resources, many are living paycheck to paycheck. As a result, many young adults find themselves lost or simply unable to effectively manage their finances upon entering the workforce. Personal finance is not a topic often taught to children at home or in schools. ![]()
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