If I have to pick one strategy that’s helped me move up leaps and bounds with managing my personal finances, it’s got to be my single source of financial truth.

When combined with this really fundamental equation:

Each month —

Income

minus Annual Expenses EMI

minus Budgeted Expenses

minus Savings for Short-term Goals

minus Investments for Medium- to Long-term Goals

minus Non-budgeted Expenses

= My Free Cash Flow

for that month

you have at your disposal a strong framework for simply getting ahead with your personal finances.

On a side note, here’s what my sketching skills look like (for the same concept):



I can’t draw if my life depended on it. But that’s a blessing in disguise because it actually helps avoid fighting over money issues.