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Do you have a Money road map?


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Hey Everyone,

I’m still on vacation so today, I’m reposting one of my old articles from 2010. We probably had about 10 readers or so back then so most of you haven’t seen this yet. :)

This is a flowchart of what we do with our money. Take a look and tell me what you think.


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.

Our situation changed quite a bit since then because I left my full time job. Now I’m not contributing regularly to my 401k and I don’t have an employee stock participation plan anymore. This year I will open a self employment 401k and contribute just once in a lump sum. Being self employed is more difficult because you have no idea how much money you will make in a calendar year so you don’t really know how much to contribute.

Anyway, my money road map needs a little updating, but overall it’s still applicable.

Do you have a road map for your money? It’s nice to have it written down so you can consult it once in a while. 

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{ 12 comments… add one }

  • Savvy Financial Latina June 21, 2013, 8:52 am

    Our financial road map is very similar.

  • Pauline June 21, 2013, 8:59 am

    Cool chart! I am not that organized. It is more like “hey! there’s some cash, let’s see what we can do”. I know doing it your way would maximize the returns though.

  • Rich Uncle EL June 21, 2013, 11:01 am

    Great Chart. I think everybody should have a flow chart like this and also an online money system. Online accounts for investing oppotunities and for emergency funds.

  • Mike@WeOnlyDoThisOnce June 21, 2013, 12:10 pm

    A flowchart is an awesome idea to visualize your budget. I’ll make one tonight–thanks for the advice!

  • thepotatohead June 21, 2013, 9:03 pm

    Definitely don’t have a roadmap like that all flow charted out, just whats floating around in my brain to keep track of. I do have a budget in excel, but maybe a flow chart would be a good idea since it’s so visual.

  • DividendPassiveIncome June 22, 2013, 1:02 am

    Great chart! Very inspiring!

    To have a money road map is a brilliant idea. Although I do a lot of product road maps in my day job, I never think about doing a money road map for my personal finance.

    To me, I have a similar thinking about my personal finance — through dividend income, rental property, and online income as a natural flow. I am still at the very initial stage of personal wealth accumulation.

    By the way, I just found your website. Very good website. Will subscribe.

  • Pretired Nick June 22, 2013, 6:59 am

    Ha ha, since I’ve read your entire site, I already saw this! I think it’s a pretty smart approach though. Definitely good one for a repost!

    • retirebyforty June 23, 2013, 10:04 pm

      Wow, I’m very flattered. :)

  • Paul @ The Frugal Toad June 22, 2013, 8:01 am

    I think most people would be shocked to make a flow chart of their financial decisions. I use quicken to get a visual of my spending but this approach is a good idea, thanks for sharing Joe!

  • BARBARA FRIEDBERG June 24, 2013, 9:08 am

    WE’ve had a budget forever. By now, our spending is so automated that we don’t need to worry about it too much. We have ingrained conservative and deliberate spending.

  • Hannah June 25, 2013, 4:33 am

    Thanks, this will help me to organize my money and think objectively about my investments. I have been reading a lot about simplifying finances http://bit.ly/A9w8m and trying out a whole lot of organize your investment tools, but they are way too complicated and that puts me off. This flowchart helps me to clearly see through exactly where all the money goes and the areas that need to be worked out so that I can have a decent saving.

  • GamingYourFinances June 27, 2013, 9:01 am

    We don’t have a “road map” per se but we do have a savings plan and an investment plan that we review quarterly.

    We just did our last review in May and I posted the results. We make it a fun evening by ordering in some food and cracking a couple of bottles of wine, which doesn’t really ‘enhance’ our financial planning skills, but it does make it a lot of fun 😉

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