Everybody looks forward to payday. Suddenly your bank account is looking more healthy. Perhaps it's still not looking great - but it's definitely more healthy than the day before. And the temptation is to go out and treat yourself... spend some of that hard-earned money. The trouble is, it's unlikely that all the money is meant for spending. And even if it is, it probably shouldn't all be spent in one go. So how should you go about making that money last between now and your next payday?
For many years, people have taken cash and put it into different pots or envelopes. A pot for rent, an envelope for the gas bill, another pot for the weekly shopping. This has offered generations of people comfort that they have budgeted effectively for the week or month ahead. The trouble is, we are increasingly using less cash. Money is paid directly into our bank accounts and we gradually (or rapidly) burn through it by making payments with our debit cards - which are now integrated into our mobile phone or smart watch to make spending money even easier. And before we know it, we check our bank accounts and realise we no longer have enough left over for the bill we need to pay a week before the next payday.
And then there is the question of larger savings budgets. Perhaps paying for a holiday - or servicing the car, or Christmas, or birthdays, or buying new clothes. Things that don't necessarily happen in every pay period, but come around before you know it with a big bill attached. How can we make sure that we have sufficient funds to pay for these items?
Money is paid directly into our bank accounts and we gradually (or rapidly) burn through it by making payments with our debit cards - which are now integrated into our mobile phone or smart watch to make spending money even easier.
As we increasingly move to digital banking, the obvious answer is to move away from physical pots and envelopes to a digital equivalent. iBudge is far from being unique in building a digital personal finance tool based on a system that uses pots and envelopes. Other alternatives include Goodbudget, YNAB (You Need a Budget) and Mint. Banks are increasingly entering into the space - with examples including Starling Bank that includes a budget app as part of their core product suite.
So with so much choice available, what is so unique about iBudge? Ultimately it's about delivering against our core mission - supporting you to make your money go further. We enable you to gain a real insight into your finances - and use the envelope/pots system in a way that is appropriate for the digital era. Good money management is all about clear insights that inform great financial decisions. Our tool lets you set up savings pots for any item and lend yourself money from another pot if you need to. Our Payday Powerup feature uniquely walks you through your allocation of money after you've been paid. You will therefore be able to gain full clarity on your savings, your approaching expenditure and spare cash you have to spend.
Using pots and envelopes to manage budgets and money is not a new thing. But it remains a hugely powerful - and empowering - way to manage your finances. The iBudge tool offers a uniquely fresh and intuitive way to deliver this principle for the digital age, with a free plan that makes the platform accessible to everyone. We look forward to welcoming you soon.
Using pots and envelopes to manage budgets and money is not a new thing. But it remains a hugely powerful - and empowering - way to manage your finances.