Jacob is in his 20’s, he works as a Client Services Operator at Qantas and he’s having some trouble. His job is the usual 9 to 5 grind and has been working there for 3 years now so he feels secure in his position, however hasn’t been able to save much of his income due to his lifestyle. He lives in an overpriced house in the inner west with a mate from high school that’s just around the corner to his favourite food joints and bars. Till recently, Jacob spent all his money on his lifestyle and so has accrued some debt to his parents who were kind enough to lend him some money earlier in the year.
Jacob Wants A Car But Doesn’t Want To Get Wrecked
In the short term, Jacob is looking to save up money to buy a car so that his living and working options aren’t limited by distance. He believes that the added convenience will increase his quality of life as he’ll be able to then visit his family, most of which live in the mountains. Jacob has his sights set on a second hand Mazda which is going for about 10k.
Additionally, Jacob has a medium term goal which is to save for a house deposit once he has purchased his car.
The only thing is, he knows his spending is out of hand when it comes to transport, food and entertainment being the socialite he is, he just doesn’t know exactly how much or how often he’s spending his money on these luxuries.
Jacob’s roommate Brent comes to him with our new financing app Frollo that he learnt about at work. Brent says that it’s great for him to sort out and finance his upcoming christmas shopping and so Jacob downloads it and gives it a go with nothing to lose.
Jacob sets up the app and links it to his accounts at the two banks he does his banking with, as well as his superannuation. He decides to wait for his first salary payment so that he can set goals and challenges for himself with a new slate.
The Frollo app sends him a push notification saying that he’s just been paid so he boots it up and lands on the home screen showing him his quick balances before logging in. Using the touch ID he logs in and he sees that on the Dashboard, Frollo has recognised his most recent payment to his card.
Jacob quickly checks out his super balance and bank account balances and sees that he’s at $2300 in his savings account and $1800 in his everyday account, concluding that he needs to think about reducing his rent if he wants to look at buying a house.
Jacob then receives a nudge about his spending in transport, Frollo lets him know that the transport category constitutes a large portion of his spending. We direct him to the offending merchant and in this case it is Uber eating up all his spending due to it’s convenience over the bus and the novelty!
Step Five: Set a Goal!
Jacob is notified that a trending goal for people like him is to buy a car. He creates the goal for himself on Frollo, inputs his potential monthly savings and is prompted to create challenges to attain his goal like spending $200 less a month on Ubers, and $300 less on going out to drink with his mates. Instead, this $500 will be put towards his car and Jacob learns that these simple steps will reduce the length of saving by 14 months!
It’s 6 months later and Jacob rolls out of the car yard with a brand new (second-hand) Mazda and a debt-free bank account, ready to start looking into the housing market!