How do the Living Pouch and the Reservoir work together?

They do two different jobs, but together they help you control your spending.

When income arrives, it first goes into the Reservoir. The Reservoir releases it slowly as Daily Cash, which flows into the Living Pouch. You swipe your daily spending into the Living Pouch, so its balance becomes your One-Number indicator of how well you are staying on budget.

Reservoir:

Holds income it has not released yet
Sets the pace by sending out Daily Cash each day
Stretches your money between paychecks so you do not run out early
You do not spend from it

Living Pouch:

Gets the Daily Cash
Holds the money you can spend each day
Is where you swipe your everyday spending
Is the number you watch to stay on pace

Roo’s Water Analogy: Think of a dam. The Reservoir sits upstream and holds the water. The Living Pouch is where that water collects for daily use. Just like a dam lets water out slowly to people downstream, the Reservoir lets your money out slowly so you can pace how fast you spend it.