If “budgeting” sounds about as much fun as “dieting,” it’s probably because most of us approach saving money the same way we approach losing weight.
We start off excited about a worthy goal—be it a healthy bod or a healthy bank account—but when progress is slow or we feel deprived, there’s a very human tendency to give in to temptation.
That’s followed quickly by a sense of failure and guilt and a “Heck, I’ve blown it anyway, might as well give up entirely and eat the whole thing/buy all the shoes” attitude.
Well, we’re not diet experts, but we do know money, and today we’re sharing a simple way you can get yours under control.
Our number-one hint?
(We know that sounds a little crazy. Bear with us.)
Creating a cash flow plan isn’t rocket science. It’s really more a matter of psychology—and pretty simple psychology at that. When humans are faced with a lot of decisions, we get tired and default to the easiest option. That’s typically the least healthy (in the case of food) or the least conducive to long-term financial stability (in the case of personal finance).
The key to cash flow, then, is removing as much of the decision-making around money as possible.
Douugh makes creating a budget easy with two of our most popular features, Saving Jars and Autopilot.
We all have financial goals, whether they’re as modest as a nice dinner out every week or as extravagant as owning a mansion in the Hamptons. The key to saving for a specific goal is being clear about what it is, how much we need, and how quickly we want to get there. The sense that we “should” be saving for a nebulous future thing or event isn’t nearly as motivating as having a tangible goal in mind.
That’s why Douugh offers Savings Jars, a simple way to separate your money into goals and track your progress in saving for each of them.
Because watching your money accumulate in your Jars, that’s motivation on steroids!
As soon as you open your Douugh account, you get a Rainy Day Jar to encourage you to build an emergency fund. But you can set up Jars for anything you’d like to save towards—holiday gifts, a vacation, a car, that mansion …
Because Jars are completely separate from your checking account, you won’t be tempted to dig into your savings, ensuring that you’re always living within your means and saving for your future.
If you’re trying not to eat the chocolate chip cookies, does it make more sense to leave them out on the kitchen table, or to put them in the cupboard where you can’t see them?
Same goes for budgets. Leaving your money lying around in plain view makes it easy and very tempting to spend it. But if you stash it away quickly, ideally before you’ve even seen it, you’ll have a much easier time keeping your hands off it.
Autopilot’s Salary Sweeper feature makes budgeting super easy. As soon as you get paid, we automatically “sweep” your salary into your Bills Jar, Savings Jars, and your Rainy Day fund.
Whatever’s leftover is yours to spend, guilt-free.
Budgeting Should Be Easy
Just like a diet, the more complicated budgets are, the harder it is to stick with them. So make it easy on yourself. Reduce the number of decisions you have to make and the number of times you have to make them.
… And you’ll get that mansion sooner than you think.