Wednesday, December 07, 2011

Geldzin2: Income Distribution

In version 1.6 (build#56), I introduce the concept of income distribution. This is the second unique feature in my personal finance management system that no one else out there has. Simply put, "income distribution" is the practice of earmarking (or distributing) your income towards budget categories, debt, and other savings goals systematically. It ensures that your immediate budget needs are covered, debt paid off as quickly as possible, and other savings goals catered to. All you have to do is punch in your paycheck whenever it arrives, and the system will tell you how to use it.

As you can see in the screenshot above, you simply plug in an income amount and distribution tells you what should be applied towards charity & giving, current and next month budget needs, and debts or loans. When you save the distributions, it counts as a deposit as well. If there is any leftover money, you have a choice to save it for a future distribution, or spread it out among all your budget areas.

The lifestyle principle is that you should only spend from what you have earned/distributed rather that what you have planned/budgeted. In other words, just because there is a budget doesn't mean the money is there. The budget is only the beginning: income distribution is a necessary second (and ongoing) step.

To see this feature in action, access the webapp at and login. [Demo account is username guest and password geldzin]. Navigate to {Distributions | Income Distributions}.

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