Baker over at ManVsDebt, who was inspired by Jim at Bargaineering, inspired me to create my own financial network map. I won’t go into detail on how to create a map, follow the previous links and you will get a better idea about it than I can provide. I used their advice and OpenOffice.org’s Draw application to create my financial network map. The below image is my map followed by an explanation of the map.
Arrows on the map indicate the direction in which funds are moving. Dual arrows indicate a two way transfer path. Our hub of account activity is at the Joint Checking account with our local brick and mortar bank. From there everything is saved and payed. We have an IRA with no active ties as we haven’t been funding it. Other than that the green circles are checking, green rectangles for saving, red for liabilities, orange for bills, and yellow for investments. Any business income, not on here because I haven’t had any, would fund into Kyle’s Checking.
I really liked this exercise in financial planning, it really gives you a great graphical view of your financial situation as well as making it easier to explain to your spouse. If you haven’t done this before I really suggest you sit down and go over your accounts and creat a map, whether you do it on the back of a cocktail napkin while drinking a brew, or at your computer with some fancy software. You will learn and it will help you on your journey to financial prosperity.