The budgeting service that takes control of your pay

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The Prosperity Project 33 min 1 speaker 8 chapters transcribed just now
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What is MyBudget’s unique “pay‑you‑out‑of‑your‑own‑account” budgeting model?

Nadine Higgins 0:00
Kelda, I'm Nadine Higgins and welcome to the Prosperity Project.
Nadine Higgins 0:10
There are lots of apps that help you create a budget, but the execution of it, that's up to you. But a new entrant to the New Zealand market, Australian company My Budget, is a bit unusual. You give them your money and it takes over your finances. It pays your bills and your debts, it adds to your savings, and then you get to spend some. So how does that work? What does it cost? And does outsource? Your financial management actually make you any better with money. With us on the Prosperity Project is the founder of My Budget, Tammy Barton. Well Tammy, welcome to the Prosperity Project. Great to have you here. Thanks so much for having me. I'm very excited. Tell me about starting my budget, because you were young, right?
Nadine Higgins 0:55
You were about twenty-two. What was it that you identified that you could do differently in this space?
Tammy Barton 1:02
Well, at the time I was working as a trust accountant at a solicitor's firm in Adelaide. And as it so happened, someone left and the managing managing partner said to me, Do you think you could look after this little debt collection business that we own as well? And I was like, Yeah, sure. How hard can it be? I think that's my motto, how hard could it be can it be? And so I I started looking after this debt collection firm or all these clients. clients and what I noticed was a lot of people did not know what they could afford to pay back on their debts. And I noticed that people were earning quite good incomes. So I thought, well, I need to refer them somewhere to put a budget together so they can work out what they can afford to pay back to their creditors.
Tammy Barton 1:45
And I I looked around and there was nowhere that I could refer them to. So I started doing it myself and helping them to put a budget together. Uh and I realised very quickly that a budget is only the first step. Uh it shows you where you've been spending your money, but actually sticking to the budget is the tricky thing.
Nadine Higgins 2:03
I was gonna ask you that. In theory it's so simple, right? Yes. You gotta make sure that what's coming in is more than what's going out and and in the very worst situation it should be equal.
Tammy Barton 2:16
What is it that we get wrong? Well, I just think, you know, we get carried away spending, we like to keep up with the Joneses, but it's it's not even our fault, I don't think. I think it's just that the tools available to us uh or there's just not a lot of tools available to us. Um the ones that are there are telling you, you know, where you've spent your money, uh but it's not dictating what the future could look like if you spent your money in a certain way. And um and so that was what I realised was the piece that was missing is that visibility into the future over the next twelve months and how your financial decisions today can impact your future. How Because the way in which you manage your money has a big impact on the way that your life turns out.
Tammy Barton 2:56
Now that's not saying that money makes you happy or anything like that. But that is But a
Nadine Higgins 2:59
lack of
Tammy Barton 3:00
it can certainly make you unhappy. It can and it takes your options away and it gives you less freedom. Um so what you do have, if you can manage it well, can often um Like peop people don't realise what they could actually achieve with their life, not necessarily their money, but with their life if they just manage their money in a more um structured way and and had the right support to help them achieve their goals.
Nadine Higgins 3:24
Quite a big leap though to go go from saying, let me show you how to budget to actually give me your money and I'll do it for you. Did you have to work quite hard to gain people's trust?
Tammy Barton 3:36
Yeah, particularly when I was younger. Um, you know, I used to tie my hair up and put my glasses on so I'd look older. Now I always wear my hair down, I don't put my glasses on if I can help it. Um, yeah, but I built trust through relationships um with my clients. And I I specifically remember these clients saying to me, they're probably in their, you know, f uh fifties and I'm like twenty two and they were like when we to be honest, Tammy, when we first walked in and sat down and started talking to you, we thought

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