Keen and I made this handy flow chart of our family cash flow using draw.io. It’s free and easy to use.
- The shared checking account is for family expenses – groceries, Netflix, etc
- We have a goal of saving 20% of our income, after maxing out our workplace 401ks
- We use our shared credit card account for big ticket items and pay the card off monthly.
- We have separate spending accounts for personal expenses (clothes, hobby items, etc). This is the money we have left-over after paying ourselves first.
- Compounding savings comes from our savings investments in things like real estate, small businesses (someday), and retirement account investments.
Drawing out the cash flow helped Keen and I think through a lot of money concerns that we had, but which we had not discussed. If you’re debating how to split your spending/saving try it out!