Virtual Budgeting With Category Threshold Pre-Authorization

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Solution Overview

Problem

Existing budgeting systems fail to efficiently allocate and authorize expenditures before they are made, lacking the ability to categorize and control spending within predetermined thresholds, especially in a cashless society.

Innovation Solution

A computer program product that sets spending thresholds for categories, categorizes expenditures, and controls credit card usage by temporarily allocating funds to category accounts, activating/deactivating cards based on thresholds and geolocation, and reallocating funds after a term.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Loss of time

If retrospective allocation of expenditures is used (QuickBooks, Excel, Quicken), then expenditures can be categorized after payment, but pre-authorization and control of expenditures before payment is not achieved

Engineering Contradiction:

Improvetime to categorize and control expendituresVSAvoidexpenditure control before payment

Core Design Contradiction:

Loss of timeVSReliability

Solution Approach 1:

The system performs preliminary categorization and authorization of expenditures before payment is made. Users pre-categorize expenditures and set spending thresholds for each category, enabling the system to authorize or deny transactions in advance rather than retrospectively

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system provides real-time feedback on spending by monitoring category thresholds and notifying users when spending approaches limits. This feedback mechanism enables proactive expenditure control before budgets are exceeded

Inventive Principle:

Principle #23Feedback

2Reliability

If traditional cash budgeting methods are used, then spending control is achieved, but the system becomes obsolete in a cashless society

Engineering Contradiction:

Improvespending controlVSAvoidadaptability to cashless environment

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system replaces physical cash handling and traditional budgeting methods with an electronic authorization system. Credit cards are activated or deactivated based on virtual budget allocations, eliminating the need for physical cash while maintaining spending control through digital threshold monitoring

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If spending thresholds are set for each category, then expenditure control is improved, but device complexity increases due to multiple accounts and thresholds

Engineering Contradiction:

Improveexpenditure control within categoriesVSAvoidnumber of accounts and threshold settings

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system uses a single credit card that serves multiple functions by being dynamically activated or deactivated for specific categories based on budget thresholds. This eliminates the need for multiple physical cards or accounts while maintaining category-specific control

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system dynamically adjusts the functionality of the credit card by activating or deactivating it for specific categories based on real-time threshold monitoring. This dynamic behavior provides complex control capabilities without requiring complex static structures

Inventive Principle:

Principle #15Dynamics

Data Source

PatentUS12444001B2Virtual budgeting systems and methods

Publication Date: 2025.10.14 PROACTIVE FINTECH LLC

AI summary

Systems and methods for budgeting and/or spending control. In some implementations, a user may select a plurality of spending categories and/or an amount, such as a threshold amount, for a single, intended transaction on a mobile application or a web-based application. A debit card/spending account under the control of the user may then be activated and/or funds may be temporarily allocated to the debit card for the intended transaction. The debit card/spending account may automatically default to at least one of a zero balance and an inactive status other than when sufficient information is received prior to each intended transaction.