A money map. Such a simple idea, and in the same time, not one that I have thought of until I saw it on a FIRE blog post, on Married with Money . Scrolling down through their post, I’ve noticed that it is not at all an unpopular idea, and quite a few FIRE bloggers have attempted to describe their finances using this method.
What is a money map?
A money map is a graphical way of representing the flow of money in a household. The simplest version would include an income, a current account, and expenses. Once we include any investment accounts, pensions, or credit cards, the complexity of such a map grows, together with the need to present something graphical instead of just a verbal explanation.
How does my money map look like?
OK, what is going on?
The left side should be pretty clear – I’ve tried defining my different income streams.
The blue box represents my current accounts. The reason I have a second account, with Lloyds Bank, is to handle household expenses through it. This was useful when I was sharing the household, since the contributions to the account had to be equal and were easy to account for. As I currently live alone, I am planning on closing this account around April.
The red arrows and boxes show money flows which I am not happy with – expenses. To be in line with the FIRE movement, I am constantly revising these expenses, and trying to minimize them.
The green arrow and boxes show money flows towards different forms of investments. My previous post is listing the different types of accounts available in the UK, and as you can see, I am an avid explorer. However, at least 3 of these green boxes will disappear, as I am trying to simplify my finances and maximize my returns.
What is not on the map?
- A current account I barely use, with Monzo Bank (which I love)
- Another current account I barely use, with Starling Bank (which I also love)
- A pension account that I do not contribute to
- Any business accounts. They may show up soon, if they become relevant to my regular income
What is going to change about this money map?
A few things should disappear in the near future:
- The Cash ISA will close down around March
- I will empty the accounts with RateSetter and LendingWorks, as the return is too low
- The current account with Lloyds may disappear, and together with it, the credit card
- I may apply for another credit card to replace the Lloyds one
If you’re asking, creating a diagram as the one above is super simple – I have used Google Drawings for it.
Now, I am curious, how does your money map look like?