Time is a wonderful thing isn’t it? It will speed along when you least expect it. You will eventually see the magic that is compound interest. Auto-payments will stack up, sooner or later there are accounts everywhere and you can’t remember them all.
WHERE IS YOUR MONEY?!
A long time ago I was in the dark when it came to a lot of things: budgets, net worth, and money-maps.
Back in the beginning of learning about personal finance there was one post that made me really think. 5 easy steps to map our your money flow
A money map. Think of it as a treasure map but with multiple X’s and the treasure chests keep getting bigger.
A money map is simply a chart that shows you where all your money is coming in and going out. The more boxes you have the more complicated you are making your life. You don’t even need to be fancy with yours. In fact until this post mine was just text! Below is the steps I took to create my own money map.
Building Your Own
- You start by charting out where your money comes in from. This can be paychecks, side hustles, anything that provides a source of regular income.
- Add the bank accounts that money is sent to. We have two different banks with multiple accounts in each.
- Where does the money go from there? You may add credit cards, auto withdrawals for utilities or retirement accounts.
- *Extra credit* Put in which bill gets pulled or charged to from which account.
I was updating our money map for this post when I realized how complicated ours is but it works for me. I know there are two accounts with money coming and going. Those two serve very specific purposes.
We have one checking account that is only for saving money (ie retirement and college). The other checking account is only for spending money. I didn’t even realize this until after I made te money map. This is also a modified take on Two checking account system.
Do you have a money map? How do you track your money’s flow? Do you include anything else within your tracking?