Why Map Your Finances and Accounts with a Money Map?
When you go on vacation, how many of you are like me? I have to find a map of the area. Because there’s something comforting about knowing exactly where you are at all times. Especially in an unfamiliar city. You can learn how far away the places of interest are, and perhaps even find some “hidden” treasures. All this from the visually appealing lines and notations of a well drawn map.
With this in mind, a map of your finances can be useful as well. It can help to highlight redundancies and inefficiencies. And it can provide security that you understand how your money flows through your accounts.
And because most people are more visual in their learning than others, a money map is a great tool. It helps them to see concepts and ideas rather than just talk about them. To that end, I’ve added this post to a personal finance blog chain. That is to say, there are a few other blog posts on this same topic. All this to give you an idea and hopefully some inspiration to create your own money map for your finances.
And check out my money map below.
I didn’t actually list my various financial institutions on the map along with the various balances and/or other account info, because, well . . . I wasn’t born yesterday. But for your own personal money map, it might be helpful to keep track of this info.
Our mortgage is our only debt, which is budgeted through our bills and expenses out of our checking account.
I probably could simplify my money map by combining the two savings accounts for the emergency fund. This is just a bit of redundancy that isn’t necessary to eliminate, but it could be an improvement.
The savings escrow account is a way to save money towards recurring annual expenses. Some call these sinking funds. I figured putting them in their own online savings account would earn a little more interest than just keeping that cash in the checking account. Also, as we only use debit cards, I like to limit our exposure by keeping a low balance in our checking account.
Our bank does offer excellent security and monitoring, but why take the risk of possibly having our debit card stolen and our account emptied.
All in all, I’m satisfied with our money map. Because I think it’s relatively simple and easy to understand. And understanding where your money goes and keeping track of all your accounts is a great place to start.
How about you? What does your money map look like? Where can you improve?
The other links in the chain:
- Anchors are Apathy Ends and Budget on a Stick
- Link 1 – Luxe Strategist
- Link 2 – Adventure Rich
- Link 3 – Minafi
- Link 4 – Othalafehu
- Link 5 – The Frugal Gene
- Link 6 – Working Optional
- Link 7 – Our Financial Path
- Link 8 – Atypical Life
- Link 9 – Eccentric Rich Uncle
- Link 10 – Cantankerous Life
- Link 11 – Retirement Manifesto
- Link 12 – Debts to Riches
- Link 13 – Need2Save
- Link 14 – Money Metagame
- Link 15 – CYinnovations
- Link 16 – I Dream of Fire
- Link 17 – Stupid Debt
- Link 18 – Spills Spot
- Link 19 – Making Your Money Matter
- Link 20 – Life Zemplified
- Link 21 – Trail to FI
- Link 22 – The Lady in the Black
- Link 23 – Her Money Moves
- Link 24 – Smile and Conquer