BUDGET MANAGER 101

key points:

DEBT PAYMENTS:

  • it’s the principal that you paid back plus interest and other costs on your debt
  • the percentage tells you whether your debt payments are a burden on your income or not
  • that’s one important thing banks consider to decide whether to lend you money or not

EXPENSE LIMIT:

  • you can set a budget for your overall expense
  • and the app tells you how you’re doing

YOU SAVED:

  • you can set a goal of not spending at least a certain percentage of income
  • if your savings rate is greater than the goal, the app tells you how much you can still spend to meet your goal
  • if you’re not meeting your goal considering your overall expense, but you are when you consider only your essential expense, the app tells you the amount of not essential expense that caused the breach: you could have met your goal by just cutting back on not essential expense, without sacrificing the basic needs of a normal living
  • at that point, you can go to Expenses Page, and find where you spend most of your money on not essential things, to decide where to cut back on not essential expenses

SAVINGS RATES

  • the brown line is for the monthly savings rates, calculated by considering all your expense (essential and not essential)
  • the green line is for the monthly savings rates, calculated by considering only your essential expense

Is there any trend?:

  • if the line goes up, the percentage of income not spent increases

Why can’t you meet your goal?:

if the brown dot for a month is below the goal line and the green dot for the same month is above the goal line, it means that:

  • for that month, it was only your not essential expense that caused you not to meet your savings rate goal, which, for the future, means that you can meet your goal by just cutting back on not essential expense, without touching the expense necessary to meet the basic needs of a normal living

DETAILS – EXPENSE LIMIT

  • in the screenshot, the app warns you that you spent more than 90% of the expense limit from the first day you started using the app, to today

DETAILS – IF YOU LOSE YOUR INCOME

  • in that screenshot, the apps warns you that, if you were to lose your main source of income now, you wouldn’t have enough cash to sustain your essential expense habits, for a number of days that expense refers to
  • you’d have to sell some liquid assets

YOUR INCOME BY CATEGORIES

the amounts to enter include taxes:

– than you enter taxes onto cards TAXES on Expenses Page

your income breakdown, at a glance

YOUR EXPENSES BY CATEGORIES

LEFT SIDE:

expense breakdown for the category, between:

  • essential expense
  • discretionary expense

RIGHT SIDE:

category’s weight on your overall expense, broken down between:

  • total expense (essential plus discretionary): orange line
  • essential expense: green line
  • discretionary expense: red line

IF THAT’S TOO MUCH INFORMATION FOR YOU, YOU CAN GO BARE BONES

  • total expense (essential plus discretionary)
  • and share of the overall expense

you can set a monthly budget for each single category

  • in that screenshot, the app warns you that, for category vacation, you’ve already breached through your budget from the first day you started using the app, to today
  • but you’re still within the budget for the whole year

you can rapidly go to any category: swipe from the right edge of the screen, to reveal the list of all categories

TOP 3 ESSENTIALS

  • what are the 3 categories where you spend more money for essential things?

  • is your essential expense concentrated on few categories?

you compare the 3 slices against the gray one

WHERE DO YOU SPEND THE MOST?

WARNING:

  • the orange line doesn’t represent the share of the overall expense taken by the category
  • it represents how far away the category is from the one that takes the highest share of the overall expense
  • therefore the line for the category taking the highest share, is as long as the page width

WHERE DO YOU SPEND THE MOST ON NOT ESSENTIAL THINGS?

  • you set the sorting type to ‘by highest not essential’
  • and then focus on the red line

WHERE DO YOU SPEND THE MOST ON ESSENTIAL THINGS?

  • you set the sorting type to ‘by highest essential’
  • and then focus on the green line

WHERE DO YOU SPEND THE MOST, NO MATTER WHETHER IT’S ESSENTIAL OR NOT ESSENTIAL EXPENSE?

  • you set the sorting type to ‘by highest expense’
  • and then focus on the orange line

YOUR EXPENSE ON EACH CATEGORY AGAINST THE BUDGET YOU SET FOR THAT CATEGORY, FOR THE WHOLE YEAR

if the line is red, you’ve already breached through the budget for the whole year, for the corresponding category

YOUR EXPENSE ON EACH CATEGORY AGAINST THE EXPENSE LIMIT TO TODAY, BASED ON THE MONTHLY BUDGET YOU SET FOR THAT CATEGORY

you focus on categories with a line in focus made up of an orange and red length and a blurred line with no red length:

  • for example, that’s the case for vacation
  • you’ve already spent more than the budget you set for vacation form the first day you started using the app, to today
  • but you’ll still be able to stay within the budget for the whole year, if you reduce the current pace of spending on vacation

YOUR ASSETS AND DEBT

ASSETS

are your assets worth more now than what they were when you got them?:

  • value of your assets based on the latest market value you entered
  • and their value based on the market value you entered when you acquired them

breakdown between liquid assets and not liquid assets

within that breakdown, too, you can know how much your assets have changed in value

DEBT

total debt and percentage of assets

breakdown between:

  • debt to be paid back by the end of the year (short-term debt)
  • debt to be paid back in the next years (long-term debt)

YOUR ASSETS BY CATEGORIES

you tap the plus or minus button on card CASH only the first time you start using the app:

  • aside from that, it’s the app that automatically updates the amount of cash based on the operation you perform

how much have your assets changed in value since you got them?:

  • latest market value (based on the latest market value you entered)
  • and initial market value (based on the market value you entered when you got the assets)
  • the dot is green if the asset class has increased in value
  • the dot is red if the asset class has decreased in value
  • the graph line is the visual representation of how much the asset class’ value has changed, relative to the class with the biggest value change (therefore the line for the class with the biggest value change, covers the whole right (green) or left (red) length of the gray line)
  • you compare greens (classes with value increase) against greens and reds against reds

at the top of the page is the value change for all the asset classes considered together

if that’s too much info for you, the app can show you the bare minimum

assets breakdown at a glance

within each class


  • you can create as many items as you want
  • you can update the items to the latest market value, so you can track their value change over time

each item’s weight on the class


each item’s value change

each item’s value change relative to the others

  • which are the best (worst) performing investments? (they’re the ones with the longest green or red line)
  • are your investments performing similarly?

in that screenshot:

  • share 2 and share 6 are performing very differently from the best performers
  • the investments whose value has decreased since you made them, are performing very similarly


when you enter the sale of an item, you can see:

  • the capital gain or loss
  • the capital gain or loss for all the items within the same class, considered together

YOUR DEBTS

  • how much is the debt you have to pay back by year end?
  • how much is the debt you have to pay back in the next years?
  • how much have you already paid back?

at the top of the page, is the visual representation of the breakdown between short-term debt and long-term debt

3 classes of debt

  1. general purpose loans:
  • the lender makes money available to you and you can spend it as you please
  • the operations to enter debt and pay back the principal, are done on card GENERAL PURPOSE LOANS

you enter interest and other debt costs onto card FINANCIAL (debt service) on Expenses Page

2) specific purpose loans:

for example you buy a house or a car through financing:

  • you get a loan that can be used only for that purchase
  • you don’t get money
  • on card SPECIFIC PURPOSE LOANS you only record the loan you get
  • when you’re debited amounts for principal repaid plus interest and other costs:

you enter principal repaid onto the proper expense card on Expenses Page (in that example, it’s REAL ESTATE for the house and TRANSPORTATION for the car)

you enter interest and other debt costs onto card FINANCIAL (debt service) on Expenses Page

3) other debt:

  • it’s non-loan debt, for example money you have to pay as reparations for damage, or child support
  • you enter operations on this class as you do for specific purpose loans

debt classes breakdown, at a glance