Your budget includes categories for spending, short-term saving, and long-term saving, so doesn’t it make sense for your bank account to let you organize money that way too?
Stash is excited to announce partitions2, a new cash management tool that helps you create different categories within your Stash account. Partitions allow you to put money toward any financial goal you choose, from paying down your educational debt to money for groceries, even saving for a vacation.
In conjunction with partitions, Stash also offers spending insights1, a tool that comes with your Stash banking account that tracks how you spend the money in your account so you can visualize your money habits as you develop budgeting and saving goals with partitions.
What is partitions and how does it work?
As of March 31, 2020, you can find partitions in the Spend tab of your Stash account, as long as you have an account with an activated debit card. If you’ve already created a Spending Cushion for short-term savings, that Cushion will become one of your partitions now.
When you start to create your partitions, take a look at your spending insights, which you can find in your transactions details under the Spend tab in the app. This tool sorts how you spend your money in a given month into a visual pie chart of categories such as groceries and restaurants. Looking at those insights can help you build your partitions.
For example, if you know you spent $500 on groceries last month and you want to cut down on that spending, consider putting $400 (or whatever amount you decide) in your Groceries partition for the next month.
You can also label each partition in your account to reflect any of your budgeting goals. For example, you may want to call one Emergency Fund and another one Credit Card Bills. You could even set one up as Trip to Europe, and one for Buying a House. Partitions allow you to save for both your short-term and long-term goals by allocating your money accordingly.
Say you decide that you want to save more money towards buying a house. You can instantly move money from your Trip to Europe partition or any other one. These partitions aren’t different bank accounts. You can think of partitions as different files in a filing cabinet, with your Stash account as the cabinet.
Currently, you can create up to five partitions in your account. While you can’t delete a Partition yet, you can rename a partition as your needs change. You can also move money instantly between partitions if needed.
When you set up a partition, you can also create a reminder to tell yourself to add more money to it on a schedule that suits you. Plus, if you have Direct Deposit set up with Stash, you can automatically split each paycheck into different partitions, so you can continue achieving your financial objectives.
Why use partitions?
Stash created partitions to help you stay on track with your budgeting and saving. And if you use a budget template such as the 50-30-20 budget or the envelope method, you might find partitions familiar, because you’re already saving money in different buckets every time you get paid.
Partitions can help you save for specific goals, while you stay on top of saving.
We’re excited for you to get started!