Why use a Percentage-based Routine?
The percentage-based transfer offered through Astra is one of our most powerful features for the automated movement of money. Plenty of experts will suggest that you save a given percentage of your annual income, but in practice calculating and moving that money around can be a chore – no longer.
With Astra, you can now set an account to be your “source account” which will be monitored for income activity (which shows up as deposits). You then specify how much of each deposit as a percentage of the total that you would like to move to another account and you are all set. Want to save 5% of every paycheck to go towards a new car fund? No problem! Want to set aside 30% of your deposits to pay taxes? Done. It has never been easier to use your existing financial accounts to organize your finances the way you want to and it starts with Astra.
Setting up a percentage-based transfer is simple:
- You want to utilize the profit first strategy for your new small furniture business, so you decide to set up a 52-week challenge in your Astra app. Keeping with the Profit First approach you have already established four different accounts at your local credit union (Profit, Tax, Owner’s Pay and Operating Expenses).
- Through your research, you have found out the percentages that you want to use for the division of all new income (deposits) to your main business checking account, and you will use those to set up new percentage-based transfers. They will look something like this:
- The distributions of all new income (deposits) will follow this schedule:
- 5% of Income to Account: Profit
- 15% of Income to Account: Tax
- 50% of Income to Account: Owner’s Pay
- 30% of Income to Account: Operating Expenses
- On Thursday, January 15th, you get a notification that a deposit of $500 has settled in your main business checking account and that those funds will be distributed according to your predetermined schedule. The transfer activity will look like this:
- 5% of $500 ($25) TRANSFER from Business Checking to Account: Profit
- 15% of $500 ($75) TRANSFER from Business Checking of Income to Account: Tax
- 50% of $500 ($250) TRANSFER from Business Checking of Income to Account: Owner’s Pay
- 30% of $500 ($150) TRANSFER from Business Checking of Income to Account: Operating Expenses
- All of the scheduled transfers can be canceled or paused when you receive the individual notifications, but if you leave them intact the transfers will run the next business day.
- With a few quick steps, you can set up automated savings that can transform your personal or business finances – get started with Astra today!
How to set it up