The PouchPlan combines the best of the envelope budgeting system with the advantages of today's electronic payment abilities. Combining the two systems results in a safer, more reliable, and less active participation requirement for users. You will be rewarded with a complete system for controlling and organizing your financial activities. It’s core is a naturally intuitive based spreadsheet that has you split your expenses into those which are regular in amount and frequency and those expenses that are not. Those expenses that are not regular in amount and frequency are labeled irregular.
You will change the way think about and you use your bank account. Your bank becomes the payment processer for your regular expenses, not a place to park money until you decide what to do with it. All of your regular expenses will be paid automatically from your bank and the PouchPlan will provide for you the correct amount of deposits required from each paycheck. Here are some examples of regular expenses: House payments, car payments, rent, insurance payments, child care, cable, internet, phone, water, memberships, dues, and very often your utilities.
You will then determine your expenses that are irregular in both amount and frequency, which will be paid for with cash. Examples of these types of expenses are the following: Groceries, clothing, gasoline, household goods, gifts, entertainment, car maintenance, and miscellaneous. These expenses are divided into categories which form your Pouch and will be paid for with cash out of the section of the Pouch to which it is assigned. The Pouch is a simple coupon sized expandable file, available on the website or at all “mart” and office supply stores, into which you will put your cash per the spreadsheets instructions.
The transformative power of the system is provided by the tool of the PouchPlan spreadsheet. The spreadsheet automatically calculates your bank deposits, cash needs, and the timing of both, not just your budgeted amount. Once set up, you are on autopilot. It requires about 5 minutes per paycheck to keep you exactly on target with your plan.
What it does for you!