Households to ditch the spreadsheet for the cloud

Most of us like to divide our lives squarely in two – home and work. But there is a growing number of financial consultants that are inclined to have you start treating your downtime more like your office time, so as to better manage your household budget and finances.

Thankfully that doesn’t extend to workplace jargon – well not yet anyway. Just imagine if when you asked your partner if they could pick up milk on the way home they questioned if that was on the grocery roadmap. Or if, when querying where your teenage daughter was going on a Saturday night, she asked you to park that question for an offline conversation the next day.

All jokes aside, there is merit in getting more business minded with our household budgeting efforts – we do tend to spend up large. According to the last Australian Bureau of Statistics Household Expenditure Survey, the average Australian household spends around $69,166 on general household living costs. Out of a total of pool of $642 billion spent by households, this includes:

  • $78.4 billion a year on cars versus $2.2 billion a year on public transport
  • $8.0 billion a year on beauty versus $2.0 billion a year on brains
  • $14.1 billion a year on alcohol versus $1.1 billion a year on tea and coffee

So in a world of cloud enabled accounting systems and financial API connectors, it should come as no surprise that cloud budgeting startups like myprosperity are now looking to help households ditch the spreadsheets in favour of their platform. Using real time data, in much the same way their accounting predecessors have done, they are seeking to empower homeowners to make better and more timely decisions about how to run their households.

The wind is clearly in their sails. Just this week the Australian based startup announced it had hired the former Australian CEO of Xero, Chris Ridd as it’s new chief executive. Also backing the platform is the well-respected MYOB founder Craig Winkler.

The company has raised an additional $2.5 million for its household financial data aggregation portal, pulling in everything from bank feeds to superannuation, credit card data and insurance policies for that, dare I say it, single household view. Seems it’s hard to get away from the jargon after all.

According to Business Insider, the company has 10,000 users and $15 billion of assets running through its platform, with Ridd quoted as indicating the company has plans to move into selected overseas markets.

I certainly think there is demand for this sort of product. A while back I actually considered using Xero myself to achieve a similar outcome, but with the platform catering to businesses, it didn’t quite fit what I was after, without considerable workarounds. But this however may just fit the bill. My household ones, at least.

Daily Fintech Advisers provides strategic consulting to organizations with business and investment interests in Fintech. Jessica Ellerm is a thought leader specializing in Small Business.

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