Greetings fellow debt despisers!
Today I am bringing you a “financial map” that provides a graphical view of our personal family financial system. I first heard of the idea from Jim of Bargaineering.com. Here is the premise as defined on his website:
A financial network map is a one-page diagram that shows the links and relationships between each of your financial accounts, which include but are not limited to bank, brokerage, mutual fund, retirement, credit card, and service accounts.
These maps are valuable for two reasons. First, they give you a good snapshot of your finances. Second, it forces you to understand and, if you’re married, discuss your finances.
Our Financial Map
How It Helped Me
Although I have a good budget in place and already have a decent hold on my financial situation…creating this map was very insightful for me. The biggest benefit I noticed was simply being able to view a simplistic one page picture of your financial state without being overwhelmed by numbers and details. Adding both actual numbers and goal numbers to my map was something I did to help me easily visualize not only my current financial state, but also my future course. The largest problem I noticed after creating the map was the fact that neither my wife nor I are currently contributing to our retirement accounts. Even though this is a great time to contribute, we are holding off by choice, in order to pay down our high interest debt first. Once this debt is gone, we will shift focus and begin contributing (which should occur 6 months from now).
Your Financial Network Map
Follow this link if you would like to know how to construct a financial map of your own.
Here are some examples of other financial maps for you to check out and compare against you own:
- Baker from ManVsDebt – stresses how much creating his map helped him, and how it is a living document.
- Baker also included my financial map in his Carnival of Debt Reduction!
- Kyle from SuburbanDollar – mentions how his map helps bolster communication with his wife and helps lead to prosperity.
- MyJourneyToMillions – Creating a map helped this couple see just how deficient their previous plan was!
- RainyDayPennies – How to use MindMapping software to help you create a Financial Network Map budget plan.
I hope this will help motivate you to create your own map, or to simply consider taking a closer look at your overall personal financial health and to take positive steps to help improve it.
DFA is passionately dedicated to helping others break the bondage of debt using biblical principles.
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