When we are teenagers, money may be simple. We babysit, we get money. We eat pizza, we spend money. The amount of pizza we can eat is directly tied to the amount of babysitting we do.
As we get older our money may be more complicated. We have monthly expenses like rent, annual expenses like life insurance, and expenses that we know will happen someday, but we don’t know when like home and car repair. Keeping track and allocating money for all the different expenses at all the different times, can become impossible without a system.
Some are successful on their own using a paper notebook or an Excel spreadsheet. Others may benefit from a linked online tool that provides a constantly updated view of all your spending and upcoming expenses.
There are many tools available. Two popular tools are You Need A Budget (https://www.youneedabudget.com/) and Qube (https://qubemoney.com/). As mentioned in Learning Module 3, Mint also has budgeting features so you can use Mint for both budgeting and net worth tracking.
Smart Money Mamas – Qube Money Review: Best Digital Cash Envelope App [Tutorial] 18 minutes
KEY TAKEAWAYS
What is Qube?
Qube is a digital version of “the envelope system”, however in this case the envelopes are called “qubes.”
Qube is made up of an app and an associated credit card (and a website of course).
Pros:
- Qube is a proactive tool – It stops you from deviating from your spending plan before you make a purchase
- Qube works well to keep all family members “on the same page” and working within the budget
- Qube is more secure than cash or debit cards. If the Qube credit card is stolen, funds are only available for use when a “qube” has been opened on the app. If no “qubes” are open, there are no funds on the card.
- Pre-authorization feature for subscriptions and other recurring expenses
- Amazon function to address Amazon purchases. Amazon charges when our item is shipped so one order can be spread out over multiple charges on multiple days.
Cons:
- You miss out on credit card rewards, points, and cashback. For those of you who pay off your credit card full each month, these rewards are free travel, accommodations, or money for spending money you were going to spend anyway.
- If your phone dies unexpectedly, you won’t be able to use your Qube credit card.
- It is unclear if Qube allows to you plan for future purchases and allocate at set amount each month
YNAB vs Mint | What’s the Difference? 6 minutes
This video is obviously biased as it was created by You Need A Budget (YNAB). However the video is hilarious, and does a good job describing the differences between Mint and YNAB
KEY TAKEAWAYS
Mint does a great job recording all transactions and spending.
You Need A Budget (YNAB) allows you to predict future spending and start saving for a specific future expense months or even years in advance. For example if you have an annual auto insurance cost of $1,200. YNAB will allocate $100 a month from your budget for 12 months. Many of us have had the experience where money seems to be “piling up” in our checking account. We delightedly think “We’re rich! Let’s plan a vacation!”, however the very next month, we have to pay our property taxes, our life insurance premium, and our furnace stops working. Suddenly we are broke, stressed out, and exhausted from the emotional rollercoaster.
This is the problem YNAB is designed to solve. If you were using YNAB, you would have be allocating money to the property tax, life insurance, and home repair categories each month. When we see a “pile of money” in our checking account, we think “Sweet, I am ready for my property tax and life insurance next month”. At first glance this may seem boring, however you can also allocate money to vacation and “fun money” categories, and then spend this money guilt free with complete confidence.
Magnified Money – YNAB Review | You Need A Budget App 2021 10 minutes
KEY TAKEAWAYS
The software supports You Need A Budget (YNAB) three principles:
- Give every dollar a purpose
- Embrace your true expenses
- Roll with the punches
Pros:
- You can create categories for all your spending
- You can allocate money each month to annual expenses as well as expenses you know will come someday but you don’t know when, such as car or home repair
- You can easily adjust your budget to “roll with the punches”, when real life does not follow your planned budget
Cons:
- No bill pay ability
- No credit monitoring
- No retirement planning
DISCUSSION QUESTIONS
Do any of these tools seem like a fit for your life?
Does Qube’s ability to coordinate spending with a spouse or partner sound useful?
Does YNAB’s ability to allocate money each month for annual expenses seem like a big stress reducer, rather than maintaining a buffer of money for annual expenses that everyone forgets about until they pop up “out of the blue”?
What other tools are you considering?
Are you happy with what you are doing already?
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