I have been meaning to draw up a flowchart to describe my budget, but have been putting it off. Barb’s post on why she has no budget this year finally pushed me to finish it up. If you’ve seen my monthly credit card bill posts, you know we allow ourselves $100 weekly allowance each to spend on discretionary items. This flowchart below will explain where our money goes each month.
Basically, Green shapes are good and we aim to build those accounts up. Yellow shapes are just cushion accounts and can go up and down, but we try to keep the balance somewhat stable. Orange shapes are expenditures which we’ll need to keep trimming so I can retire by the time I’m 40.
This is the ideal picture and we don’t always adhere to the rule 100% of the time. Sometime we put charges on the credit card that should have been paid with our allowance hence my credit card compliance rating. See my October and September bills for how we did the last couple of months. Yes, I know groceries are not really discretionary spending, but WinCo does not take credit card.
The one arrow that I’m not showing is from the Stock Purchase Plan to Saving account. I try to keep company stock holding to less than 5% and sell off the stocks when the price is right. ** I updated the flowchart to make it more clear. **
What do you think? Is this ingenious or what? It works for us.
I made a version 2.0 of the money flowchart!