PAY YOURSELF FIRST BUDGETING

• US 20040254835A1
• Filed: 08/02/2004
• Published: 12/16/2004
• Est. Priority Date: 11/06/2000
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Ferrell, Raymond R., Thomas, Tracey R.
• Granted Patent: US 8,473,380 B2
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0216 Investment accounts
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

The invention encourages users to not only pay themselves first, but to pay themselves first in the largest amounts possible, even if they are not able to fully pay outstanding debts. In general, the invention obtains information related to the user'"'"'s income, income sources, user'"'"'s debts (e.g., bills) and user'"'"'s goals, then provides recommendations related to the prioritization of paying certain bills and the amount to pay for each bill based upon, for example, savings goals, minimum amounts due, due dates and available income. The invention also determines a payment hierarchy which includes transferring funds to the user'"'"'s savings account prior to paying all or a portion of certain bills. The invention also monitors a consumer'"'"'s purchasing activity based upon an established budget.

Claims

1. A method of allocating income to a user savings account and to payees and monitoring a consumer'"'"'s purchasing activity, said method including:

receiving user financial information, wherein said financial information includes at least one of user income information related to user income, user income source information related to user income sources, user debt information related to user debts to payees and user goal information related to user goals;

providing at least one recommendation, wherein said recommendation includes suggestions for minimizing user debt payments and maximizing user savings;

establishing a payment hierarchy based at least in part on said recommendation, wherein said payment hierarchy includes at least a portion of said user income allocated to said user savings account and a portion of said user income allocated to said user debts;

acquiring user income;

transferring at least a portion of said user income, based at least in part upon said payment hierarchy, to at least one of user savings account and payee;

establishing and storing budget information;

uploading purchase data including a retailer item identifier from a retailer system;

accessing a remote processor to standardize purchase data to correlate a budgeted item with an actually purchased item; and

reconciling said budget information.

2. The method of claim 1, wherein said purchase data is standardized by translating a retailer item identifier into a manufacturer item identifier.

3. The method of claim 1, wherein establishing and storing said budget information further comprises:

accessing a remote processor to select a budget item;

receiving a standard identifier for said budget item;

storing said standard identifier; and

allocating funds for said budget item.

4. The method of claim 3, wherein said budget item is selected by designating one of a product category and a specific product.

5. The method of claim 3, wherein said standard identifier is one of a retailer ID and a manufacturer item identifier.

6. The method of claim 1, wherein uploading purchase data comprises using a device which includes a smartchip.

7. The method of claim 6, wherein said device comprises one of a smartcard and a transponder.

8. The method of claim 1, further comprising alerting at least one of a consumer and a third-party when a budget reconciliation determines that one of over-spending or under-spending has occurred.