I have talked a lot around here about willpower. We have a limited amount of it, and that is why many successful entrepreneurs try to remove trivial decision making from their busy lives, so they can focus on what is really important. Yes, that’s why Steve Jobs wore the same outfit every day. No more wondering “What am I going to wear?”. Because at the end of the day, your brain gets tired of making decisions, and you end up being less productive.
The same applies to savings. If you need to track every pound you spend, factor in the date of your next salary, to figure out what you can spend and save, chances are you’ll just leave it for later. As a matter of fact, two-thirds of Brits don’t even know their bank balance! Online banking has made things easier, but the ultimate solution is automation.
Enters Plum
What if I told you there is a smart saving assistant that can do all the hard lifting for you? Yes, that’s right! Plum will analyse your earnings and spending, to figure out how much you can save without going overdrawn. The algorithm recalculates your numbers every day, to make sure it adapts to your latest patterns.
Plum was created by Victor, who acquired a strong fintech background from his years leading international expansion at TransferWise,, and Alex, one of the first engineers of Tictail. The two friends realised a while back they were making good money but had no savings! They conducted an experiment to compare different saving styles. Victor went on as usual, transferring whatever was left in his current account at the end of the month into savings. Alex on the other hand, was regularly calculating how much he needed until month end and sending the extra money to savings. A few months later, he had saved twice as much as Victor.
Plum was born to help you save effortlessly small amounts here and there. Just like another latte or magazine, you won’t notice the amount is gone. And it will bump your savings rate.
How Plum Works
Once you join Plum, you link your current account so it can analyse your lines of earning and spending. Plum works with all UK financial institutions.
Then, once Plum has figured out your spending patterns, it transfers money every few days into your Plum savings. Should you have an unexpected emergency, you can still withdraw the money. However, since it is not around anymore, your brain will think there is less money to spend. And you’ll save more!
Plum sends you regular SMS to update you on the state of your savings and give you even more money saving tips. The savings are held under your name, so they are safe and can’t be used by Plum for their operations.
What are the benefits of Plum?
- Easy, effortless saving strategy
- Safe, instant access to your savings
- No need to figure out what you’ll need next month
- Save more than if you rely on your calculations or wait until month end to save
- Saves a ton of time
- Saves willpower for important things in life