Dave Ramsey’s Envelope System But Digital with Qube Money
If you’re into personal finance, you’ve probably heard of Dave Ramsey and the famous envelope system. The envelope system is arguably the most effective way to manage spending in the world. Qube Money has digitized it to make it easy.
Getting spending right is the first step to getting money right, so, what exactly is the envelope system and how has Qube Money digitized it? Let’s break it down.
Dave Ramsey’s Envelope System
Dave Ramsey’s envelope system is a straightforward yet effective way to manage your money. Here’s how it works:
- Identify Spending Categories: First, take out a stack of envelopes and label them for your spending categories, such as groceries, entertainment, dining out, and savings
- Allocate Cash: Next, take your budgeted amount of cash for each category and place it into each envelope. For example, if you’ve budgeted $200 for groceries, put $200 cash into the “groceries” envelope.
- Spend from Envelopes: When you make a purchase, use the cash from the appropriate envelope. Once the cash in an envelope is gone, you either don’t spend any more in that category until the next budgeting period, or you sacrifice money from another category.
The envelope system increases the awareness of the purpose of your money each time you make a buying decision, helping you stick to your budget and avoid overspending. However, dealing with physical cash can be inconvenient in today’s digital world. That’s where Qube Money steps in.
What is Qube Money?
Qube Money is an app and debit card combo that brings Dave Ramsey’s envelope system into the digital age. Instead of physical envelopes, you have virtual “qubes” on your phone. Each qube represents a different spending category, making it easy to manage your budget without handling cash.
How Does Qube Money Work?
- Create Your Qubes: Set up digital qubes for all your spending categories—groceries, dining out, shopping, and more.
- Allocate Money: Deposit/Transfer your money into your FDIC insured Qube account and allocate the budget amount into each qube. Easily automate recurring transfers and allocations.
- Spend from Qubes: When you make a purchase, select the balance from the relevant qube in the app. Instantly the money from the selected qube becomes available on your Qube debit card. Since each qube balance reflects real money, they update in real-time as you make purchases, so you always know where you stand. Once the money in a qube is gone, you either don’t spend any more in that category until the next budgeting period, or you sacrifice money from another category.
The Qube Money primary debit card comes with a Default Zero™ security feature. This means the card has a zero available balance until you select the qube you want to spend from. This keeps your money safe and creates the same mindful spending you have when using the Dave Ramsey envelope system.
Why Use Qube Money?
- Digital Convenience: No need to make multiple trips to the bank to cash your checks or to carry cash and worry about it getting lost or stolen. Qube Money keeps your money and budget digital and your wallet lighter and much safer.
- Instant Tracking: Receive real-time updates on your budget without the hassle of counting cash and keeping a manual log.
- Online Purchases: Use Qube’s Visa debit card for online shopping and automate subscription payments.
- Companion Cards: Easily plan and manage money with a partner without having to coordinate who needs the fuel envelope today.
- Savings Goals: Set and achieve savings goals with dedicated qubes and automated allocations, making it easy to save for big dreams or future plans without sacrificing the things that are most important to you now.
Bottom Line
Qube Money takes the best parts of Dave Ramsey’s envelope system and modernizes them. It’s easy to use and helps you stay on track just like carrying physical cash envelopes. If you’re ready to reach your financial goals, Qube Money is the way to go. Give it a try and see how your money can be a gateway to the life you want.
