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The article opens with the story of Heather Jacobs, a masseuse whose income is volatile, and it implies that she's a prototypical Even user. But she actually s
by jawns 12y ago
The article opens with the story of Heather Jacobs, a masseuse whose income is volatile, and it implies that she's a prototypical Even user. But she actually seems to be an undesirable user, from the company's point of view.
It sounds as if she's struggling not just to budget but to earn enough money to pay for all her expenses, both recurring and unexpected. (She says she's often "desperate" around the end of the month.) That's exactly the kind of user that Even should try to avoid.
I'm not necessarily faulting the woman for not being able to make enough; I'm just saying that Even's ideal user should be someone who, over time, earns enough to cover their expenses, but either has trouble sticking to a budget or would prefer the convenience of an app to handle budgeting for them.
For instance, my parents (one a teacher, who got paychecks from September to May, and the other a landscape, who earned little during the winter months) could have used an app like this when I was growing up. Between the two of them, they made ends meet, but they struggled to figure out how much to save so they'd have a reserve during the months when their incomes dipped.
One thing I am curious about, which the article doesn't touch on: What happens if I have a surplus in my Even account (which the article says is kept in a savings account), and I run into a huge unexpected expense? What are my options for tapping into that surplus?
If I have the same access to it as a regular savings account, does that kind of defeat the point of the app (to prevent people with poor willpower from spending their surplus instead of saving it)? Or is it treated like a withdrawal from a 401(k), with penalties for taking the money out earlier than scheduled?
- Infinitesimus 12y ago> It sounds as if she's struggling not just to budget but to earn enough money to pay for all her expenses, both recurring and unexpected. (She says she's often "desperate" around the end of the month.) That's exactly the kind of user that Even should try to avoid. I'm not entirely convinced of that. She could also be the very type of customer that they'll want for their expansion (i.e. into a budgeting service). They could evolve to help people both stabilize their incomes and learn how to budget better to improve overall stability
- marcinx27 12y agoI think the fact that her pay fluctuated from between $90 and $700 is what makes her the "prototypical" user. I'm sure if she had a few high paying weeks, she wouldn't be desperate at the end of the month. Also, I checked out their website and it seems that you can withdraw all of the money that you have in Even if you need it immediately. And they put a pretty big emphasis on the fact that when you start, you get hooked up with an Even employee to help guide you through your finances and using the app. It isn't just a download and go setup. It seems to me that there is a lot of human interaction involved with actually using it.
- qzcx 12y agoAlthough it sounds like she doesn't really have enough money to live comfortably on. It does imply in the article that she isn't sure of where she should spend her money. Dollar store vs. Walmart for groceries, ect. With a consistent paycheck, then she would know exactly how much she can spend on groceries and other things. Often it is the unknowns which cause people to mismanage, not that the managing was impossible to begin with.
- VikingCoder 12y ago> She says she's often "desperate" around the end of the month Depends on the definition of "often." If she's desperate at the end of the month 60, 70, or 80% of the time, you're clearly right. If she's desperate 40, 30, or 20% of the time, then I'd say she might be the perfect user that Even should try to attract. (As long as the extra $156 a year doesn't push her over 50.0% of the time!) > What happens if I have a surplus in my Even account (which the article says is kept in a savings account), and I run into a huge unexpected expense? What are my options for tapping into that surplus? From their FAQ: > Can I withdraw the money I've saved with Even? Yes, of course. It's your money. You can withdraw your Even savings by talking to your Evener in our app.