What will we eat tonight? What will I wear today? Will I take lunch to work or buy it somewhere? In a world of infinite possibilities, it's nice to default as many choices as possible. A famous example is Steve Jobs, who wore the same clothes every day. He didn't want to waste energy on this issue. Automating decisions means that you don't need willpower or energy to make an active, conscious choice. This reduces your stress.
How nice would it be if personal finance also became something simple and automatic? Initially, it will cost you some energy and time. You can clarify your income and expenses and then you think about how you can organize your money across different jars. When you have done this, you can set it up automatically and you don't have to worry about it anymore.
In our Flow app you can transfer money automatically to different bank accounts and different banks.
- Is the vacation coming up? No problem, you have money set aside.
- Municipal taxes? That amount is already waiting for you in your account.
- You would like to save (more)? You set this up automatically, so you see your savings account grow every month.
- Starting with (index) investing? Make your plan and set it up!
Why does this ‘jar thinking’ work so well for your financial situation?
Our brain thinks in boxes and if this-then that rules. When we can't fit something into a known box, we're not sure what to do with it. That can cause stress. Is it each month a surprise to you what you spend your money on? If so, you are creating a stressful, unclear situation for your brain. For your finances, this means that it gives you peace of mind to start thinking in frames and boxes, with fixed rules.
Your brain loves it when you have your income neatly divided into 'boxes', with fixed rules:
- 60% of my income goes to bank account 'fixed costs
- 10% of my income goes to bank account 'fun stuff
- 10% of my income goes to bank account 'vacations
- 10% of my income goes to bank account 'unforeseen costs
- 10% of my income goes to bank account 'future
Clear and well-organized, and that gives you peace of mind. This is also feasible for you. In the Flow app, we help you organise your money so that you immediately feel in control of your financial situation.