A wallet is a place that shows the amount of money you have in reality. This money can be cash, bank account, savings account, or credit card.
Accordingly, there are 3 main types of wallets:
Basic wallet: Manage cash or bank account money
Savings wallet: Manage savings money
Credit wallet: Manage credit cards
1. Basic wallet
Basic wallet Purpose: Used to manage cash or bank account money.
For example, you have a budget for essential activities, you can create a wallet to manage this budget with the name “Essential Spending Wallet”. This will be where you record all the income and expenses related to essential needs such as housing, food, health care, etc.
Money Lover’s advice is that you should create more basic wallets based on the number of money you have in reality. For example, if you keep money in one bank account and one cash wallet, create two basic wallets corresponding to those two amounts to manage your spending in each one.
2. Savings wallet
Savings wallet Purpose: Manage savings money
Create a savings goal and record the amount of money you add. This helps you easily track your savings over time.
You can create multiple savings wallets based on your personal goals.
1. Saving for a laptop
2. Saving for a house
3. Saving for a wedding
3. Credit wallet
Credit wallet Purpose: Manage credit cards
You can add your credit card limit and balance information and manage your spending and debt payments. If you have multiple credit cards, create more credit wallets in Money Lover to be able to control them all comprehensively.
In the budget, we will need to learn more about the concept of spending groups. These are your monthly spending categories.
- A budget is the maximum limit you set for yourself for a spending group in a month.
- A spending group is a category of spending that you may have. For example: Food, Shopping, Rent, Utilities, etc.
For example, this month you want to spend a maximum of 3,000,000 VND on food. You can set a BUDGET for the FOOD group as 3,000,000 VND.
The total budget of all groups is your total spending limit in a month.
You can set up new spending groups that suit your needs as in the example below.
We hope that through the above content, you have understood what Wallet and Budget are in the Money Lover app, so that you can actively set up to start managing your personal finances effectively.
Start your professional spending management process with Money Lover!