Money plays a central role in people's lives. Nobody wants to run out of money at the end of the month. Yet, even for Covid-19, this is unfortunately the case for 1 in 3 households in Europe. With the help of Flow, we are solving this problem.
Money comes in, money goes out
In many cases we can make money and often it is enough, but we consume too much so that the money flies out again. Maybe you recognise this, as soon as your salary arrives you see the full amount in your account and before the month is over, everything is gone.
This cycle repeats itself month after month, year after year, until we make the choice to be smarter with our money.
The old-fashioned way of dividing up money
Our grandparents knew how to handle money. It may have been different times but the principles remained the same:
1️⃣ Write your expenses and income clearly on paper. This will make your spending pattern visible. You now know exactly what comes in and where it goes.
2️⃣ Divide your expenses into categories such as fixed expenses, groceries, vacation, unexpected expenses.
3️⃣ If you have multiple sources of income, divide them into categories as well.
4️⃣ Decide what you want to achieve with your money: Is it freedom? Is it comfort? Is it a nice vacation? Or buying a new house?
5️⃣ With your personal goals in mind, choose which categories are important and how much budget goes toward them each month. If necessary, add additional categories.
6️⃣ The final step is a weekly check-in. See what you have spent and if you are in control of your own budgets.
In those days they didn't need apps and excel sheets for this, they simply divided the coins that came in into a money tin.
‘Real’ money no longer exists
In our grandparents' time, physical money was used. That money was easily divided into jars. When they wanted to know how much money there was for groceries they just looked in the grocery jar. Simple.
Today, our money has become abstract: a number in your banking app.
All income and expenses are often in one account, which makes it confusing. You don't know how much money you can actually spend. It takes a lot of time and energy to gain insight into this, let alone that people know how to get this organized in a spreadsheet. Time for a better solution.
The smart way to distribute money
More and more banks support the possibility of opening multiple IBAN accounts under 1 account. In this way you can digitally imitate the physical pottery system.
For example, at bunq you can open up to 25 accounts with 1 account without extra costs. With one push on the button you can open new accounts so you have a pot for each category.
As soon as you receive money on your main accounts, you divide it over the IBAN pots. You can do this manually every week or month, or you can use the Flow app which allows you to smartly distribute your money automatically.
A new market for innovation
Thanks to the new PSD2 regulations, more and more new initiatives are emerging that can help you get a grip on your money. Most apps give you insight into your spending and income but do not help you to proactively manage your money better.
Flow is the solution
Instead of looking backwards, we help you plan ahead and take immediate action: As soon as your money comes in, Flow distributes it to the pots you want.
Get more out of your money with Flow
With Flow you can set up a smart money manager to divide your salary into pots as soon as it arrives in your account. In the app, you'll find several money methods to help you get started.
The future of digital money
PSD2 allows consumers to take full control of how they manage their money. Since 2018, banks must offer their customers the ability to use other apps for not only insights but also transactions. This 'new' law turns financial market upside down and enables innovation.
The future of Flow
Our goal with Flow is to help everyone get a grip on their money. Our users are already reporting, after years of money stress, that within 3 months of using Flow, they have money left over and are experiencing peace of mind!
Eventually Flow becomes your automatic money pilot. You can make financial decisions with confidence and immediately see how this purchase impacts your short and long term goals.
Do you also want to start with a money system to get a grip on your money? Download the Flow app.