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.
