Here’s a new idea that I haven’t seen yet: GetSequence.io lets you apply a flowchart system with simple If/Then conditional statements to your cashflow. Imagine a visual map connecting your financial accounts and being able to manage the flow of money between them using preset rules. They call it a “financial router”.
For example, you would first have your paycheck routed to Sequence. Then a rule says “If the balance at Chase Checking is at least $5,000 (perhaps enough to pay your monthly bills), then transfer 50% to savings and 50% to your Fidelity investment account”. But then add “If the savings already has $5,000 in it (maxed out your emergency fund), then transfer all of the funds to Fidelity account”. Or you could always have 10% taken off the top into your Fidelity account, no matter what.
This type of things sounds neat in theory, but I am concerned that reality is too messy to have all these fixed rules. It also seems to rely heavily on accurate aggregation of third-party providers like brokerage and credit card accounts. Some people really like having several “envelopes” or “buckets” for budgeting and savings, so perhaps this would work for them.
Unfortunately, this is all a non-starter for me because Sequence is a fintech. Their banking services are provided by Thread Bank, Member FDIC. But as the FDIC and every other US regulator has told us after ongoing Fintech/Synapse/Evolve debacle, if somehow Sequence or Thread Bank gets confused while routing all your money around and doesn’t keep proper records of all the balances on their ledger, then the consumer is out of luck. With no protection if this start-up fails, I am unwilling to try Sequence myself. I have no other affiliation with them, either. Anyone else out there try this new tool?