Skip to main content

Check out Elastic Budgeting

It's not a secret that fiP supports elastic transactions, which is multi-source and/or has multiple funds dispositions. This key feature of fiP was available from the first days of live.
However, finance plans were non-elastic.
That had a good reason underneath.

Imagine you have planned expenses for diesel $200/month. For budgeting it's enough to have planned monthly transactions $200 each. If you refuel (say, for $35), then you just cut the planned transaction: $35 is committed, $165 is still planned.
If we happen to spend more that it was planned for the current month, fiP will take the missing part from the next month:
 - having $200 planned for diesel, we spent $210. Then, the $10 will be taken from the next period.

What if we have multiple fund dispositions? Planning public utilities as a single elastic plan:
 - electric power - $10/month
 - water - $8/month
 - gas - $2/month.
What will happen, if we commit a part of this transaction, but some sub-plans are exceeded? For instance:
 - paid for electric power - $12
 - water - $6
 - gas - nothing.
In theory, fiP should take electric's $2 from the next month, as the current one has only $10 planned.
what if we paid 42 for the electricity? Several planned transaction will loose the "electricity" part.
The source ("credit") part of the transactions should be updated properly to keep the transaction balanced.
And what if source-part of the transaction has a different currency? Or all transaction details have different. What if during partial commit the "debit" part of the transaction drained to zero, and "credit" part did not? Multi-currency transaction cannot be balanced precisely. Let's take an example:
 - user used to pay public utilities from their EUR-account. But the payments are in USDs. Then we have:
 - disposition:
    -- electricity - $10
    -- water - $8
    -- gas - $2
 - source:
   -- credit card, 10 EUR.
   -- bank account: 8 EUR
Actually we paid:
  -- electricity - $9
  -- water - &7
  --  gas - $1.
And we spent 11 EUR  from credit card + 9 EUR from bank account.

With Elastic budgeting there're plenty of different scenarios of payments and partial commits. That's why this feature is not available.... was actually.. Was not available.
But now it's implemented and available for Pro users.

You want to check it out? Please register a free account, and we'll promote it to Pro for 3 months of trial period. Join fiP now and start budgeting in the elastic way!


Popular posts from this blog

How to start planning

Important parts of a plan Financial plan is a flow of money. It must have 2 major items: incomes and expenses. Let's stick with these two for now. Building a plan Plan incomes For most of the people it's the easiest part. We are employees, have a fixed salary. Probably, some income from real-e-state objects we lend, or dividends. Such things is easy to plan. What if we run a business? Then we should have a rough estimate. Or get some vision based on previous year. Or, at least, our earning goal. Plan expenses Pay debts This is the most important part of the expenses. Debts is the main pressure. If we don't have enough earnings - we can skip vacation, rent a cheaper apartment, sell the car. But debts must be paid in time . So plan this first. Taxes Another important thing is taxes. Not paying taxes is a crime. And this must be avoided. Let's plan this too. Rental payments, public services Rent an apartment? Plan the rental payments too if you don't

5 steps to begin

1. Data Collection Before making any plan you should learn yourself a bit: financial habits and regular, mandatory incomes/expenses. The regular incomes (such as salary), mandatory expenses (taxes, insurance, rent) can be planned right away. However, such things as food expenses, garments might be hard to predict. Then it makes sense to track such expenses for a few months to get an idea about monthly levels of those. 2. Select Method Most of the financial advisors suggest 3D budgeting schemas, like X:Y:Z. For instance, you can see such recommendations as 70:20:10, or 50:30:20, etc. Such methods suggest that you allocate X% of your income to expenses, Y% - to savings, and Z% to debt. Yes, it is essential to make some savings even if you pay the debt. It's life, and many things may happen, we always should have some cash quickly available. 3. Create a Plan When you have collected all the information regarding your incomes and expenses, you are ready to create a plan (or

Start planning?

When it's a good time to start planning your money? Never have time for this? fiP will help use the Corona lockout to improve your finances! There are few simple steps: 1. register at fiP 2. make a transaction 3. and you'll get free ProPlus subscription for the rest of the year. Check out:  - elastic transactions  - budgeting  - bank-credits management ... and many other exciting financial features. Ready?