Household finances

Household Finance is a nasty thing we all have to deal with. It is often a time consuming activity and even when we try to get everything right there always seems to be some note or bill missing.

To make things easier for you, bkper prepared a book that will help you save time and get your financial life organized.

This article, rather than the  blog post on household finances, will dive a bit deeper into the details of the household finances book.


Intro

This book represents the financial habits of Robert and Patricia, a young couple which lives in a down town area of a US city. He has a daytime job with his weekly activities like Crossfit, a evening course and a weekly happy hour with his colleagues. Patricia is a self employed fashion consultant who works from home but she travels to all fashion shows in the country. Only the month of august 2015 is shown, but of course one can record as many months as desired.


Salary & Income 

As Robert and Patricia decided to share their financial lives in order to get the real picture of how much they actually spent, they decided to use the same #hastags for financial movements that they have in common. So now they only search for  #salary or #interest to find out about earnings made working or by interest earned on their saving accounts. 

To get this search result, each time when they receive their salary they book a transaction from their labor accounts to their respective bank accounts where they receive the money.

The interest on savings is done the same way.


Cash 

Both Patricia and Robert had the sensation they never knew where they were spending their cash money. Therefor they decided to record these expenses, immediately when made, on their cellphones with some obvious #hastags to identify the kind of expense they made. 

The  #cashwithdrawel at the ATM is used for the movement of money from their bank account to their wallets.

Paying with cash, the money flow goes from their wallets to some expense account. 


Credit card

Credit card spending's happen before the actual payment to the Credit Card company. Robert and Patricia book the expenses on the go and when the invoice is due they record the actual payment. 

First book expenses with credit cards.

Then pay the credit card company.

Notice that the account balance of the credit cards turn red as Robert and Patricia use their credit cards. It represents the debt they have with the credit card company. 


Bills and Invoices 

Patricia and Robert share the  housing expenses like this Patricia pays the #water bill directly from her bank account and Robert pays the rent to the landlord with a transfer from his bank account. 

The water bill payment.

The rent transfer to the landlord.


Savings

So now Robert and Patricia have control of their financial habits, they decided that they had some space to save money and at the end of each month they put a fixed value aside on their  savings accounts. 


Starting Off

At the beginning the couple decided to use some permanent accounts that they felt were important to keep track of over time. In order to get the right values of these accounts they started off by  initializing these accounts to their actual values by recording a balance adjustment. These accounts now show up on the left side of the transactions view on the web console. 


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