A Family Cash Flow Diagram

Keen and I made this handy flow chart of our family cash flow using draw.io. It’s free and easy to use.

Keen and Forrest's Personal Finance Diagram (2)

  • 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!


Author: secondhandstocks

The genesis for this blog stems from a Marine buddy and I came back from Afghanistan with more money than knowledge, and heedlessly tossed our hats into the stock market ring. A few months later, I remember discovering the classic book The Intelligent Investor by Graham and Dodd, and ravenously devouring my first introduction to value investing. That framework - with some generous additions by Seth Klarman, and Joel Greenblatt among others - guides my investment philosophy. I spent five years working in the intelligence field, both in the Marine Corps and then for a government agency after that. I speak Arabic and Pashto, have programming and analysis experience, and enjoy investing in technology companies as a hobby. I also spent a year on Wall Street working on a #1 Ranked Institutional Investor team, before deciding that that the Sell-Side was not for me.

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