Money Flow Chart

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After reading Sun’s latest article titled Where to Put the Money? I thought that I should have a stab at the answer. In the process, I came up with a flowchart that documents my thinking on where to put all my income.

It should be fairly self explanatory, and details the thought process I try to keep to when budgeting and organising my finances. By minimising the amounts in the red boxes and keeping a healthy balance in the yellow an blue/yellow boxes, I hope to give me enough breathing space to drop some capital into more risky projects such as starting a business, or making some leveraged investments. As I’m still young I can make some risky investments without damaging my standard of life, so the higher returns these investments can bring are attractive. I like to follow a two pronged strategy though with a large proportion of investment capital in “safe” investments, to give me a fall back plan if the risky investments don’t pay off so well. I suppose I’d title my approach “Get Rich Whichever Way”.

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6 Responses to “Money Flow Chart”


  1. 1 Sun April 12, 2007 at 5:22 am

    Thanks for the mention. This is an excellent chart on where the money should go.

  2. 2 Tia Buys May 10, 2007 at 2:16 pm

    An excellent chart. I absolutely agree with a two (or three) pronged strategy. I use high risk, medium risk and low risk (safe) strategies.

  3. 3 Lola LB April 11, 2008 at 6:20 am

    Yeah!! (Wrings hands)! Nice blog you have here. I’ve enjoyed much reading your last posts. Keep it that way.


  1. 1 More on Money Question | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing Trackback on April 12, 2007 at 3:24 pm
  2. 2 Finance Findings For Thursday, April 12, 2007 Trackback on April 12, 2007 at 8:14 pm
  3. 3 Anonymous Trackback on April 20, 2007 at 9:22 am

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