Many small accounts are great for organizing your spending and saving.
Accounts are helpful tools!
For instance, creating and funding an Emergency Account can give your business or personal life security. Imagine the reassurance you would feel to have built up enough money to handle unexpected expenses that may arise. Similarly, funding a Profit account for business will allow you to track and celebrate your business’ profitability. Consider all the compelling things you could do with money set aside in a Fun account.
But, how do we take advantage of organizing with accounts?
Is the answer Physical Bank Accounts?
Many banks and financial experts discuss the importance of opening multiple physical bank accounts to organize your money. They will suggest depositing all your business revenue or personal salary into one physical bank account. Then, manually transferring a percentage of your income to each of your physical bank accounts. But, banks still need to make money.
Here are some ways they can make money from physical bank accounts:
Minimum deposit requirements: To start you may be required to deposit a minimum amount into a physical bank account. Then, if your balance falls below that amount, you may be charged a fee.
Monthly maintenance/service fees: Physical banks will want you to pay monthly for their service. They may have rules to get around that, but who wants to deal with that hassle?
How can Revenue Rabbit Buckets help?
Is the answer Revenue Rabbit?
Take a small step ( We mean hop!)
No need to make a trip to the bank and navigate their fee structures. Just launch the free version of Revenue Rabbit, set up your bank accounts (buckets!), and enter your revenue. Then, decide if Revenue Rabbit works for you!
Virtual Bank Accounts
Revenue Rabbit uses buckets to represent bank accounts. The terminology comes from bucket budgeting, a process for allocating a percentage of your revenue into buckets. The origins of bucket budgeting likely came from envelope budgeting in which mailing envelopes were used for organizing money. Older readers may remember their parents using envelopes to organize money.
Revenue Rabbit lets you configure and reconfigure your virtual bank accounts called buckets. Play around with the names and percentages for your buckets. Add buckets and delete buckets. Edit percentages.
After adding your revenue (income, salary, or deposits!), you may decide your buckets aren’t quite right. Change your buckets and perform a rebucket. Repeat until you are comfortable with your buckets.
Watch Your Progress
As you add more revenue, you will see monthly graphs and charts change and transform based on your saving and spending patterns.
Buckets: Let’s get Inspired
Revenue Rabbit strives to make a difference for those looking for help with their business finances, their personal money management, or their skill at teaching others.
Scenario: Business Buckets
Business Buckets can help organize your businesses spending and saving. If you want to read more about using buckets to build a profitable business, read Profit First by Mike Michalowicz.
Scenario: Personal Buckets
Personal Buckets help to focus your spending and saving to match your life’s priorities. Organizing your buckets can clarify how you are spending and saving your money.
Scenario: Teaching Buckets
Do you feel a responsibility to guide the next generation of savers and spenders? If so, buckets can help you communicate money management skills.
Are you inspired yet?
Give it a try for free at RevenueRabbit.app: Free Quick Start. Then, let us know how it went. Hoppy Trails!
- Just opening a bank account can cost you—here are 2 fees to always try to avoid by Elizabeth Gravier at cnbc.com.
- Why you need To start ‘Bucket Budgeting’ by mebank.com.
- How To Budget Money by Tanza Loudenback at businessinsider.com.
- Featured Blog Photo by Jeff Kingma on Unsplash