According to The Business Insider.
Schematic diagram. (Photo credit: Ashraful6400/Pixabay/public domain CC0)
The traditional method of depositing cash in an envelope works, but it’s not efficient.
A couple from Las Vegas found an online bank to emulate the same method using electronic envelopes.
It helped them stick to a budget and get serious about saving, and they saved $4,000 after one month.
Over the years, many tried-and-tested budgeting techniques have been passed down, and for good reason – they can work. But as Time passes, certain methods aren’t being applied well.
In early 2021, insurance broker Nova Scialabba (pronounced Nova Scialabba) and his wife, Bonnie, a full-time mom of three, wanted to start saving more money and were initially attracted to the classic cash envelope approach. At the time, cash was deposited in envelopes intended for budgeted expenses, and the rest was saved.
But the letter method relied on large amounts of cash and was not practical for a Family of five as time passed. Using cash to pay for purchases has become more difficult because of the shortage of international currency, the massive obstruction of cash transactions, and the rise of internet banking and online shopping.
The cash envelope method works, but is not always practical.
Using the envelope method works to cut spending and save more, but it doesn’t always make sense.
Mr. Schialaba, who lives in Las Vegas, told Business Insider, “There are times when we forget to put an envelope in the house, and then we sit in the grocery store with $200 worth of groceries. It’s really inconvenient. “
The couple found Qube, an online bank and App that allows them to use the envelope savings method online and keep up with the envelope method digitally to increase their monthly savings.
The digital version of the envelope method has helped them save thousands of dollars
Until they started using a rigorous approach to managing money and budgeting, it was difficult for them to really build up their savings, Cialaba said. But seeing where their money went with the envelope system (whether it was online or in cash) became much easier.
Using the digital envelope method, they saved $4,000 in one month by curbing impulse purchases and reducing additional spending. Previously, they would have spent that money instead of saving it.
With the latest changes in the pandemic, new unhealthy habits have emerged,” says Cialaba. “Their budgeting system helped them realize they were spending too much money on Food and meals for their families and that a large chunk of cash that could have been saved was being spent on online shopping.
The new system helped them curb that. It forced themselves to really analyze what they were doing at that moment,” he says. Usually, that awareness comes after the credit card bill arrives, and by then, it’s too late. “
Not only are they more aware of their spending, but they also find it makes it easier for couples to communicate about money. It makes people aware of where the money is going and where it’s going,” he says. “
Even if the envelope system doesn’t work in the traditional sense, this new method is proving to be a simple and modern way to get the same effective results.
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