Not sure if this has been suggested before and I could not find anything matching my concept as such.
What about using pots for budgeting?
Currently for me to use this concept, I will have to keep £0 in my available balance. Each time I make a purchase I have to know the total of the purchase I’m about to make, then move the money from the Pot which makes it part of my available balance. Then make my purchase.
What I would like is my available balance to be a pot in itself. This pot would be the default for all card transactions. This could be achieved through the use of an “active” marker. This marker would in effect make any pot my available balance. Any subsequent card transaction would come from the “active” pot. Once a transaction is completed it could say revert to the default pot.
So let’s say I have 3 pots
Each month I transfer my budgeted amount to each respective pot. When I need to fill up my car for example
- Mark Petrol as my active pot
- Fill my car up
- Pay for the fuel
- Rules set default pot to becomes active again.
Same applies for then you decide to go shopping after, simply switch over the active marker to your food shopping pot and spend from there.
The ability to move money between pots and report on it would also be advantageous. Spend less in one pot allows you to increase your budgeted amount in another without adding any extra money overall.
Now as I understand it a rules engine is on the roadmap which would let you have DD come from pots. This would eliminate a situation where you switch your active pot to buy a cheeky pizza at the same time your mortgage payment comes out.