Money Management: Useful Categories - Marks in the Sand



Money Management: Useful Categories

June 7, 2013 © Kramii (filed under Money, Personal Finance)

Here are some categories for managing personal finances (I like putting things into categories) . I find them a useful basis for my financial planning and filing.

Planning and Budgeting

Overall resource planning. Managing the relationship between time and resource.

Income

Money that comes in.

  • Wages
  • Income from investments

Spending

Money that goes out. Paying for stuff.

  • Goods
  • Services

Saving and Investing

Paying today, benefiting tomorrow. All investment involves a degree of risk.

  • Savings plans
  • Shares

Borrowing and Debt

Benefiting today, paying tomorrow. Also involves uncertainty.

  • Mortgage
  • Loans

Protection

Paying to reduce uncertainty.

  • Insurance

Giving

Resource that goes out, but for which I receive no (material) benefit.

Acknowledgements

Original image courtesy Wikipedia.

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