Count cash not sheep to sleep

FINANCIAL stress is keeping us awake at night, with two in three Aussies losing sleep over money, research from NAB’s subsidiary UBank found.

But experts believe this can be turned around if people embrace money management.

UBank today rolled out an online tool dubbed Free2Spend and the name says it all – money leftover is what the account holder is “free to spend.”

Using a daily transaction account, customers set goals, monitor whether they are over or underspending in real-time and see how it’s affecting what they’ve set out to achieve.

UBank CEO Lee Hatton said consumers needed to recognise their financial position before penning out financial goals.

“Set goals and understand where you want to go and you can turn it completely around so you are not stressed, you are empowered,’’ she said.

“Having a tool that is proactive, not reactive, can empower you rather than beating you down.”

For example, if a user plans to save $20,000 for a wedding, they can set aside cash for regular expenses and see how much extra they need to save each week to reach their milestone by a set date.

The tool provides customers with real-time savings goals and gives them a daily spending allowance after savings and expenses are met.

Other banks have also launched innovative online savings tools recently, including ING, which rolled out an everyday roundup tool that rounds up card spending to the nearest $1 or $5 per transaction and tips “loose change” into a high-interest savings account.

Tribeca Financial CEO Ryan

Watson said online tools help people “keep things simple”.

“A weekly check in on your spending habits and bank balances is a great way to stay on top of spending and hence how you are tracking towards your goals,’’ he said. “Having an everyday spending account... creates greater accountability in a person’s spending habits.”