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Golbguru over at Money, Matter and More Musings has about the easiest to understand, most straightforward article on where the money goes - "Illustrated Cash Flow For Dummies"
The article breaks it down into 6 categories, and uses diagrams similar to hydro flow charts (water diagrams) to show where the money goes.
- In Debt (More flowing out than in)
- Living Paycheck to Paycheck (All that comes in, goes out)
- Sucked by Money Leaks (One big in, lots of little outs)
- Frugal Living (Flow in, Less out, reservoir filling gradually)
- Frugal Living with Multiple Income Streams (Lots in, less out, Reservoir REALLY filling)
- Stingy (Flowing in, but none flowing out. Ready to burst)
- Happy (Flowing in, less flowing out, and a backup source ready for use)
It’s simple, intuitive and overall elegant. Golbguru proves that understanding and controlling your finances doesn’t have to be complicated. This is smack-yourself-in-the-forehead stuff.
Here’s hoping Golbguru writes more like this.
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