Budgets & Allotted Funds


#1

Budgeting

In the future, and if possible, I would very much like the added functionality of Budgets, though also the ability to Allot Funds.

Budgeting would be brilliant as it allows you to keep track of your spending and keep an eye on particular indulgences that may be reducing your funds more than you so wish. Being able to set budgets on categories such as Entertainment, Transport & Groceries would help to avoid over spending in those particular areas. Furthermore, being able to set budgets on particular merchants within those categories would be even better.

For example: You may want to set a budget of £100 on travel, though find that you are using Black Cab’s or Uber way too much. If you are able to set budgets on these particular Merchants, you may feel more inclined at times to hop on the tube or on a bus.

Allotted Funds

Being able to Allot Funds, removes the surprise of particular scheduled (or even unscheduled) payments being taken from your account after having forgotten or having lost track somewhat. If you’re able to allot funds for Direct Debits, which are then segregated from your funds (like Goals), it allows you to plan these payments and seemingly make them in advance, so as to avoid being stung later on after a little too much indulgence.

For example: You may want to set aside funds for all of your Direct Debits at the beginning of the month, so as to know where you stand in terms your remaining balance, and how much you have to spend besides those scheduled payments. As those payments are taken, the allotted funds are reduced to zero, scheduled to be topped up at the beginning of the following month, or annually depending on the setup of the fund.

Alternatively, if there were a way for the app to predict (based on previous scheduled payments) how much is likely to be outgoing, there could be a toggle to have that predicted amount removed from your balance.

For me in particular, this functionality is absolutely necessary. It is tremendously easy to forget (regardless of the scheduled payments section), which payments you have to make and when you have to make them. It would be vastly better if you could seemingly “make them early” (by allotting them) so as to avoid future hassle.

Ladies and gentleman, thoughts and additions are very much welcome. It took a lot of thinking to try and succinctly describe what it is I’m after and I may well have missed something.

Cheers!


#2

In addition, Goals allows you to allot funds for specific Goals you have, though you must release those funds in order to make use of them. If you had the choice to direct a payment/payments to that goal, the payment amount could be deducted from the goal and added back to your balance.

For example: You may be on holiday after having completed your holiday fund and are buying cocktails at a beach bar. Instead of releasing the funds and adding them to the rest of your balance, you could assign the drinks payment to your Goal and have that amount taken from the Goal and added back to your balance. Your balance remains the same and your Goal depletes.

1. Your balance is £100
2. Your Holiday Goal has £500 allotted to it
3. You buy drinks for £22.80
4. £22.80 is taken from your balance
5. Your balance is now £77.20
6. You assign the payment to your Holiday Goal
7. £22.80 is removed from the Goal
8. Your Holiday Goal is reduced to £477.20
9. Your balance is restored to £100

Saving the Holiday money in the first place is one thing. Ensuring you only spend that saved money is another. This is also why budgets would come in handy.


#3

I hope I didn’t scare everyone away with the length of the post. Thoughts and opinions are most welcome. Thoughts, @Gallifreyangirl, @Joe_Merriman, @JamesPratley, @sarah.guha & @anne?

I’d hate for the idea to get lost within the many realms of the forum :slightly_smiling_face:


#4

I like the idea of allotted funds and being able to “protect” these early in the month.


#5

Both of these have been suggested and regularly asked for for a long time.

The second idea seems complicated and would be some real next level stuff, the stuff we’d hope to see from a challenger and fintech in the next few years as the technology gets honed.

The first, to be honest, I’ve also thought should be a basic and honestly it’s a bit of a joke that a bank with instant notifications, spending insights, and a general ethos of putting the customer in charge of their money doesn’t have it.

Honestly, this and custom spending cycles are must haves that I don’t really think we’ll see now. Should have been there from day one, now seem to be less important than the big headline grabbing things. It’s the only thing that has really disappointed me with Starling.


#6

Me too. I think that being able to seemingly “Pay early” allows you to make the most of your funds when you have them. Technically you wouldn’t actually be paying early, though the funds would be allotted and ready to go once the payment is requested by the merchant.

Hey @J87, would you mind elaborating on what parts are complicated? Really, these are really simple ideas, though the logic behind them gets a little lost when you’re a little long winded like myself :joy: I did my best to be concise lol


#8

With the exception of bill splitting that’s exactly why I have the joint account. Money goes in, it’s put aside and then I never have to worry about it. Would also be nice to include those regular payments that aren’t direct debits but come out in the same day every month, like Strava, Spotify, Netflix, etc.


#9

Precisely. If the funds could be allotted for all of these payments and kept apart from your funds, you can truly keep track of how much “free” money you have to spend on whatever you wish.


#10

Personally seems way too complicated to me, I want a bank account that is simple to use, and I’m sure many people just want that.


#11

I agree that banks should be simple, though I believe that there should be particular functionality that allows you to deal with your funds as you so wish.

  • Budgeting should of course be a feature.
  • Allotting funds already exists within Goals as you can set aside money, separate from your balance. You should however be able to do this for scheduled payments so as to have them covered in advance of the payment date.
  • Finally, being able to assign payments to a Goal (like my holiday example) ensures that you don’t spend more than your allotted Goal money.

I agree that in text it can come across as complicated, though I assure you the function of it would be insanely easy and tremendously useful.


#12

Proof of the pudding…eh?

Bottom line, though, is that such functionality may have its benefits, but they’re probably marginal. At best I should think the proposal may find itself in the long grass - at least for now. :slightly_smiling_face:


#13

I’m creating a mock up. Marginal as they may seem, it’s the sort of feature I think many would benefit from. A lot of people are turning to “Smart Banks” so as to help them save and manage their money better than with a conventional high street bank. Family and friends of mine are currently using Monzo for the budgeting feature alone. Many people on a budget like to know how much money they have to spend, though with the peace of mind that they’re not eating into the money they require to pay their bills and their rent. If you could alleviate those worries, with truly simple functionality, why wouldn’t you?


#14

Monzo is all about making money management easier and I’m sure they’ll note your ideas.

So anyway, drama-wise, do you have an all-time favourite role?


#15

At the moment Starling is just a bank with an app, it offers nothing more than other banks do and especially no more than new fintech banks do, even its vertical card isn’t a first.

It would be nice if it actually did a few things differently.

The whole marketplace is going to be the norm even for high street banks with open banking, so that won’t be anything different soon.

If its going to be simple then maybe it could be an idea to offer something different, but simple.


#16

:joy: Colonel Frank Slade in Scent of a Woman is a peach of a role. It won Al Pacino his Oscar. Should I ever be so lucky, it would be to play a role like that :slightly_smiling_face:

To my knowledge, no other app offers the functionality I am suggesting. It is different and it is simple. It builds on how Goals works and gives you something better. I feel I have gone too technical with my initial explanation. Computer Programmer turned actor…inside my head is pretty messed up :joy:


#17

1. You begin at the Home screen with a balance of £100

2. You navigate to the Pay section

3. You notice you have a scheduled payment to Specsavers of £18 on 01st August.

4. You click on the scheduled payment and realise you can allocate funds.

5. You click on the “Allocate Funds” button and decide to allocate £18 to the scheduled payment.

6. The £18 has successfully been allocated to the scheduled Specsavers payment.

7. Returning to the home screen, your balance is now £82, due to having allocated the £18 to the upcoming Specsavers payment.

NOTE: When the payment is taken by Specsavers, it is taken from the allocated funds and not from your balance. Your balance remains your “free” money to spend on whatever you choose without fear of spending too much and not having enough for your scheduled payments.


#18

I really like that! Like you said for people who need to manage their money tightly, this is a good solution!


#19

Thank God! :joy::joy::joy:


#20

You’ll find a number of similar threads which call for goals to be used to store then directly pay out.

Let’s hear other folks views…


#21

Thanks for un-complicating it :stuck_out_tongue: