Cam Mulvey
December 20, 2024
Ever look at your bank balance and think "Is this really how much I can spend?" You're not alone. For most of us, that number in our checking account only raises more uncertainty. It doesn't tell you about the credit card payment that's due next week, the subscription that's about to hit your account, or the money you're trying to save for your next vacation.
The stakes are particularly high for young adults today. Judging by the following stats from McKinsey, Gen Z finds themselves in a challenging position:
That's why we created My Money, a smarter way to understand your finances. Here's how it works:
My Money transforms a potentially misleading bank balance into clear, actionable information – a financial reality check. It's the difference between looking at your gas tank and looking at your GPS – one tells you how much fuel you have, but the other tells you if you'll make it to your destination.
Let's break down exactly how My Money works and why it might be the mindset shift you've been looking for to finally get ahead of your finances.
This gap between total money and available money leads to some of the most common financial mistakes. It's particularly challenging given that 73% of young Americans prefer spending now rather than saving for the future. Without a clear picture of what's actually available to spend, it's easy to dip into money that's already committed to upcoming bills or financial goals.
Here’s a generic example:
$500 sits in a checking account, appearing ready to spend. But the reality is more complex. A $350 credit card bill is due next week, and $80 in subscriptions are about to auto-draft. That seemingly comfortable $500 balance? It's actually just $70 in truly available funds. Plus, you told yourself you were going to start saving $50 a month in an emergency fund.
That's the core concept behind My Money – showing the difference between what's in an account and what's actually available to spend. By automatically accounting for upcoming bills, scheduled payments, and savings goals, My Money reveals a critical number: what's truly safe to spend right now.
To calculate what's actually available to spend, My Money starts with a simple formula and builds in layers of financial reality. The base calculation is straightforward: take the total cash balance across all accounts, then subtract upcoming obligations and savings goals.
The first layer accounts for scheduled payments. With 79% of U.S. adults holding credit cards and 43% facing costly fees or minimum payment issues, keeping track of payment dates is crucial. Modern banking has made this even more complex – subscriptions, utilities, loan payments, and other bills typically auto-draft, often without warning. My Money helps avoid overdraft fees and late payments by keeping you aware of upcoming obligations and preventing any surprises.
The most powerful feature is how My Money handles savings goals. Instead of requiring transfers to separate accounts, it mentally earmarks funds for specific purposes. This creates a psychological barrier against the "present bias" that affects so many financial decisions.
Present bias is the tendency to prioritize immediate rewards over future benefits, even when we know the future benefits are more valuable. It's why a $50 dinner today often feels more appealing than $50 in savings, even though that $50 saved could grow to much more over time.
The need for this approach becomes clear when looking at typical Gen Z spending patterns. Nearly 50% of spending goes to four highly discretionary categories:
Rather than eliminating these expenses, My Money helps transform them into planned purchases. By setting aside money specifically for these categories, spending becomes intentional rather than impulsive. The same purchases are possible—they just might require a bit of patience.
62% of consumers living paycheck-to-paycheck and only 53% of Americans have three months of emergency savings. The need for better financial planning is clear. My Money helps break this cycle by making it much harder to accidentally spend money that's needed for upcoming obligations or committed to savings goals. Every dollar that appears as available truly is available – creating clarity that builds financial confidence over time. Starting with My Money allows you to confidently plan out what’s available for essentials, like groceries and wellness purchases, and what can be spent as fun money.
Many people already separate their money into different accounts – checking for spending, savings for goals. My Money works seamlessly with this approach while offering additional flexibility. When transfers are made to savings accounts, My Money automatically detects and adds these to the appropriate savings goals. But the real innovation is that it doesn't require separate accounts to work.
By allowing manual contributions to Savings Goals, My Money makes intentional saving possible even before setting up separate accounts. This means anyone can start building better financial habits immediately, regardless of their current banking setup. Whether funds are physically transferred to a different account or mentally earmarked within checking, My Money ensures they're properly accounted for in your available balance.
Understanding your true financial position shouldn't require complex spreadsheets or multiple bank accounts. My Money brings clarity to your finances by showing exactly what's available to spend after accounting for upcoming bills and saving for future goals. It transforms the uncertainty of checking your bank balance into the confidence of knowing your real spending power.
In a financial landscape where we face rising costs, substantial debt, and the challenge of building savings, My Money provides a foundation for better financial decisions.
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