One of the key assumptions behind Spendbot is that budgeting is inadequate for a lot (A LOT) of people. I know this is a funny thing to say when a majority of people don’t even budget (I actually talked to someone today who has Never prepared a budget), but it’s true. Why, you may ask?
Well, first, a Spend Plan takes into account timing of income and expenses. $1500 a month in income and $1500 a month in expenses is one thing, $750 next week and $750 two week later with $800 in rent and car payment due next week is another. If that situation happens a couple times a month, you’re looking at… going hungry or even worse, $100 or more a month in late fees.
Second, a Spend Plan takes into account one time items. $1500 a month in income and $1400 a month in expenses is one thing, but having to come up with $1800 in six months to go to your best friends wedding in Hawaii without a focused effort to save is another. In a recent Spendbot poll, 42% of respondents said they had to skip a trip they had planned to take because they didn’t save enough for it.
Third, a Spend Plan can be very actionable. Without dates, it’s difficult to schedule payments. With dates, and payee information, payments can be scheduled to be made automatically.
So why don’t more people make Spend Plans? I think it’s three reasons: 1. They don’t think about it; 3. It’s not as easy as a budget; 3. There’s not enough benefit. And yet, nearly every Fortune 1000 company creates both budgets and cashflow projections, using software that’s way too expensive for individuals to afford, because it allows them to optimize their performance and get the most out of their spending.
Spendbot will eliminate these reasons. First, we’ll educate consumers on the benefits of Spend Plans. We make creating a Spend Plan, and cashflow projections, easy, with templates and calendar tools and a spending discovery app to help. We also allow you to visualize your future balance (click the images below for a larger screen shot):
And we have a few other cool ideas we’re working on, including scheduling- and even making, if you want- payments and transfers.
So, visit www.spendbot.com today by clicking this link (or using AAAAAA as the Associate code), make your Spend Plan, and let us know what you think!