Saving money is one of the most crucial aspects of personal finance. Without a sustainable savings plan, you may find yourself unable to handle unexpected expenses, fulfill future goals, and have a comfortable retirement. However, creating and sticking to a savings plan can be challenging, especially if someone is unsure of how much to set aside every month. Fortunately, UnitPlus has developed a saving plan 2.0 that makes the process much easier and in the long-term more value creating.

Using machine learning technology, you can now have an algorithm that determines your savings for the next month and suggests the optimal amount to invest. At UnitPlus, the savings algorithm utilizes financial data like spending behavior and other characteristics. Using these features, it proposes monthly a user-tailored investment amount and accompanies you in efficiently allocating available funds.

How the Algorithm Works

To start with your smart savings plan, you connect your bank with your UnitPlus account using the open-banking interface of your financial service provider. This information will allow the algorithm to understand spending habits and determine the disposable income. Once the algorithm has your input, it will start studying your spending and saving habits.

The algorithm recognizes financial patterns, including saving and spending habits, monthly fixed expenses and more, and combines all this to a prediction of your savings amount at the end of the monthly cycle. In our app, you can further customize this to your needs by setting a minimum and maximum amount to invest as well as your desired current account’s iron reserve.

Benefits of a Smart Savings Plan

Using a smart estimate of savings over the next month has several advantages. First, knowing the disposable income a month ahead and investing this savings amount directly and not waiting until the end of the cycle translates into additional interest yield. Over the long-term this maximises your return potential.

Another aspect worth considering is the effect on human behaviour, e.g. if an individual’s disposable income is estimated lower than anticipated it can be considered a warning: she or he might be overspending or an exceptional high debit (e.g. an annual recurring charge such as car insurance) is about to come.

Regardless of whether you have activated one or more portfolios with UnitPlus, the personalized savings plan invests the optimum amount in the portfolio you have selected and to which you have also linked your UnitPlus bank card.

Concluding, the smart savings plan improves personal financial wealth while simultaneously being able to cover expenses with the UnitPlus Mastercard without the inconvenience of manual allocating financial means, allowing you to improve your financial independence.