“You need a budget!”
You’ve probably heard this piece of advice many times before if you’ve been trying to get your finances under control. While budgeting can be difficult and time-consuming, there’s something exciting about achieving a financial goal (not to mention how much more fun life is when we don’t stress about money!)
Frollo’s intuitive ‘bucket’ system – as favoured by the Barefoot Investor, no less – helps you put together a budget and a financial plan in less than two minutes.
Better still, our app will automatically track your money, and identify ways to help you find more of it for the things that really make you smile! (Think of Frollo as a Fitbit for your finances!)
How does bucketing work? Let’s say you earn $4,000 per month, after tax. Frollo will divide your income into three simple buckets as shown in the example below:
- Living expenses – 60%, which is about $2,400
- Lifestyle expenses – 10%, a suggestion of $400
- Your financial goals – 30%, approximately $1,200
This type of plan is likely to challenge you in the short term, but it’s worth the effort, and you'll see results within 4-6 weeks!
Each day, Frollo securely tracks your spending from your bank account, breaks it down and categorises it according to its spending type, such as groceries or bills. Then, we tag it into one of the buckets detailed above.
This means you can see at a simple glance exactly where your income is going, without having to watch every last cent.
Note: 95% of the time Frollo will correctly categorise your spending. However, for the 5% (which gets smaller each day!) you may need to recategorise the transaction.
The great thing is that Frollo learns from your re-categorisation, and the more you engage, the faster we learn.
Learn more about bucket budgeting here.