Hello, my name is Nhung and I have a business idea for a new banking product called Manage My Money.
When you search “Money Management” on, for example, Play Store, dozens of apps assisting personal finance management will be shown. However, according to Australian Financial Security Authority, there were 31,506 personal insolvencies in 2011-2012 and 30,837 in 2012–13.
Currently, in the banking market, there isn’t a significant plan to help to solve this problem.
And this idea involves a plan, which individuals can switch to when they need to save for:
– Paying off debts
– Mortgage loans
– Car loans
– Special events
– Holidays, etc.
By choosing this plan, income is deposited into your online saving account with limited access. Every week or month, an agreed amount of money will be transferred from the saving account to your spending account. This money would be spent on food, transportation, paying bills and so on.
So, how does this plan help you save better?
1. Money will be kept in the saving account which will earn you interest. In addition, if you agreed on a plan, for example, that gives you ,500 a month, however, at the end of the month, you only spend ,350; 0 will be transferred back to your saving account which in turn will give you more interest.
2. You can’t overspend and in an emergency case, you will have access to the saving account, however, the system will amend your allowance in the next periods in order to help you get back on track. For example, you need to spend 0 out of your budget, and your plan goes for 18 more months, a deduction of .22 will be applied on your monthly allowance.
Setting up the plan would be as simple as visiting your local branch and liaising with a bank teller or financial planner.
So let’s start managing your money. Good things come to those who save.