Guide to Pockets

Overview: 

Pockets are sub-compartments within your Found account that allow you to proactively set aside money for different business needs. Each Pocket can have a custom name, color, logo, and even a “savings goal” linked to it.

By default, every Found account starts with two pockets: Primary and Taxes. 

Your deposits go into your Primary pocket, by default. If you choose, a portion of your income can be automatically set aside in your Taxes pocket to help you save for tax time.

Beyond these two default Pockets, you can easily create up to 8 custom Pockets for different parts of your business. 

Custom Pockets can be a powerful way to make sure you’re setting aside money to:

• Pay your own salary (e.g. “Owner’s Pay”)

• Pay 1099 contractors (e.g. “Contractor payroll”)

• Budget for ongoing expenses (e.g. “Marketing & Advertising” or “Operating Expenses”)

• Save for long-term goals or a large business expense

• Save for retirement or a rainy day fund

• And more.

How to use Pockets:

• Create a custom Pocket:

Once you create a custom Pocket, you can automatically set up a percentage of all income to be set into that Pocket moving forward, which Found calls a “deposit allocation”. 

This enables you to divide up incoming cash across various business needs the moment it hits your account to ensure you are not overspending or undersaving in certain areas.

• Manage your Pockets:

On your Banking home screen, you will see all of the balances across your Pockets, along with which virtual debit cards you can use with each. 

The money in these Pockets is still in your same single Found checking account, but seeing balances across Pockets is a nice visual way to see what you have earmarked for each business need.

Importantly, you can update your “deposit allocations” for each Pocket and transfer money between Pockets at any time.

• Build a budget with Pockets and virtual cards:

Create virtual cards for common expense areas (e.g. “Advertising” or “Travel”) with pre-set spending limits and assign them to only be used with corresponding Pockets. This is a powerful way to budget for those expense areas based on your cashflow and also ensure you control your spending accordingly. 

Additional resources:

Watch the video above or read the quick answers below about how to get started using Pockets.

Creating Pockets:

• How do I create a custom pocket?

• How do I set savings goals for my pockets?

• How do I set deposit allocations for my pockets?

Moving money between Pockets:

• How do I transfer funds between my pockets?

• What is flexible spending?

• Why is my Primary pocket balance negative?

Also read: Introducing Pockets: The Smarter Way to Manage your Freelance Finances for seven ways that pockets can help you organize your cash flow, along with examples.