Complete personal finance system — budgeting, debt payoff, investing, tax optimization, net worth tracking, and financial independence planning. Use when managing money, building wealth, paying off debt, planning retirement, or optimizing taxes. Zero dependencies.
Complete personal finance system covering budgeting, debt elimination, investing, tax optimization, insurance, estate planning, and financial independence. Works for any income level, any country.
Run /finance-check to score current financial health:
| Signal | Healthy | Warning | Critical |
|---|---|---|---|
| Emergency fund | 3-6 months expenses | 1-3 months | < 1 month |
| Savings rate | > 20% | 10-20% | < 10% |
| Debt-to-income | < 36% | 36-50% | > 50% |
| Housing cost | < 28% of gross | 28-35% | > 35% |
| Net worth trend | Growing quarterly | Flat | Declining |
| Insurance coverage |
| All critical covered |
| Gaps exist |
| Major gaps |
| Investment allocation | Age-appropriate | Slightly off | Way off |
| Tax optimization | Using all vehicles | Some unused | None used |
Score: /16. Below 10 = immediate action needed.
net_worth:
date: "YYYY-MM-DD"
assets:
liquid:
checking: 0
savings: 0
money_market: 0
investments:
retirement_401k: 0
retirement_ira: 0
brokerage: 0
hsa: 0
crypto: 0
property:
home_value: 0
vehicles: 0
other: 0
liabilities:
mortgage: 0
student_loans: 0
auto_loans: 0
credit_cards: 0
personal_loans: 0
other_debt: 0
net_worth: 0 # assets - liabilities
monthly_income_gross: 0
monthly_income_net: 0
monthly_expenses: 0
savings_rate: 0 # (income_net - expenses) / income_net
debt_to_income: 0 # total_debt_payments / gross_income
Document ALL income sources:
| Source | Type | Monthly Amount | Stability | Growth Potential |
|---|---|---|---|---|
| Primary job | W-2/salary | High | Moderate | |
| Side business | 1099/self-emp | Variable | High | |
| Investments | Dividends/interest | Moderate | Moderate | |
| Rental income | Passive | Moderate | Moderate | |
| Other |
INCOME (net take-home)
├── Fixed Expenses (needs) — target: ≤50%
│ ├── Housing (rent/mortgage + insurance + tax)
│ ├── Utilities (electric, water, gas, internet, phone)
│ ├── Transportation (car payment, insurance, fuel, transit)
│ ├── Insurance (health, life, disability)
│ ├── Minimum debt payments
│ └── Groceries (baseline)
├── Financial Goals (savings/investing) — target: ≥20%
│ ├── Emergency fund
│ ├── Retirement contributions
│ ├── Investment contributions
│ ├── Debt extra payments
│ └── Specific savings goals
└── Lifestyle (wants) — target: ≤30%
├── Dining out
├── Entertainment/subscriptions
├── Shopping/clothing
├── Travel
├── Hobbies
└── Personal care
This is the 50/30/20 framework — adjust ratios to your situation but track against these benchmarks.
| Stage | Target | Timeline | Where to Keep |
|---|---|---|---|
| Starter | $1,000 (or 1 month) | 1-3 months | High-yield savings |
| Basic | 3 months expenses | 3-6 months | High-yield savings |
| Full | 6 months expenses | 6-12 months | HYSA + money market |
| Enhanced | 12 months expenses | Optional | HYSA + I-bonds + money market |
YES — True emergencies:
NO — Not emergencies:
debt_inventory:
- name: "Credit Card A"
balance: 0
interest_rate: 0
minimum_payment: 0
type: "revolving"
tax_deductible: false
- name: "Student Loan"
balance: 0
interest_rate: 0
minimum_payment: 0
type: "installment"
tax_deductible: true
| Method | How It Works | Best For | Psychology |
|---|---|---|---|
| Avalanche | Pay highest interest first | Mathematically optimal, saves most money | Disciplined people |
| Snowball | Pay smallest balance first | Fastest "wins", builds momentum | Need motivation |
| Hybrid | Pay any debt < $500 first, then avalanche | Quick wins + math optimization | Most people |
If debt interest rate > expected investment return (historically ~7-10% stocks): → Pay off debt first
If debt interest rate < expected investment return: → Pay minimum on debt, invest the difference
Grey zone (4-7%): → Split extra money 50/50 between debt payoff and investing
| Factor | Weight | How to Optimize |
|---|---|---|
| Payment history | 35% | Never miss a payment — automate minimums |
| Credit utilization | 30% | Keep below 30%, ideally below 10% |
| Length of history | 15% | Don't close old cards |
| Credit mix | 10% | Installment + revolving is good |
| New credit | 10% | Limit hard inquiries |
monthly_budget:
month: "YYYY-MM"
income:
salary_net: 0
side_income: 0
other: 0
total: 0
fixed_expenses: # ≤50% of income
housing: 0
utilities: 0
transportation: 0
insurance: 0
debt_minimums: 0
groceries: 0
childcare: 0
subscriptions_essential: 0
subtotal: 0
percent_of_income: 0
financial_goals: # ≥20% of income
emergency_fund: 0
retirement: 0
investments: 0
debt_extra: 0
savings_goals: 0
subtotal: 0
percent_of_income: 0
lifestyle: # ≤30% of income
dining_out: 0
entertainment: 0
shopping: 0
travel_fund: 0
hobbies: 0
personal_care: 0
gifts: 0
subscriptions_fun: 0
subtotal: 0
percent_of_income: 0
variance: 0 # income - all expenses (should be ≥ 0)
| Method | Effort | Best For |
|---|---|---|
| Envelope system | High | Cash-heavy, needs discipline |
| App tracking (YNAB, Mint) | Low | Tech-savvy, automated |
| Spreadsheet | Medium | Control-oriented, custom |
| Agent-tracked | Low | Let AI categorize + alert |
| Reverse budgeting | Lowest | Auto-transfer savings first, spend rest |
The simplest effective system:
Run quarterly:
Don't let irregular expenses surprise you:
| Month | Expense | Amount | Funded? |
|---|---|---|---|
| Jan | Insurance renewal | ||
| Mar | Tax preparation | ||
| Apr | Tax payment (if owed) | ||
| Jun | Car registration | ||
| Aug | Back to school | ||
| Nov | Holiday gifts | ||
| Dec | Annual subscriptions |
Sinking fund: Divide annual expenses by 12, save monthly. No surprises.
Follow this exact sequence:
Simple rule: Age in bonds, rest in stocks (adjust for risk tolerance)
| Age Range | Stocks | Bonds | Alternatives | Risk Level |
|---|---|---|---|---|
| 20-35 | 90% | 10% | 0% | Aggressive |
| 35-45 | 80% | 15% | 5% | Growth |
| 45-55 | 70% | 25% | 5% | Moderate |
| 55-65 | 60% | 35% | 5% | Conservative |
| 65+ | 40-50% | 40-50% | 0-10% | Preservation |
3-Fund Portfolio (Bogleheads recommended):
2-Fund Portfolio (even simpler):
Income Portfolio (retirees):
$500/month invested at 7% average return:
| Years | Contributed | Portfolio Value | Growth |
|---|---|---|---|
| 5 | $30,000 | $35,800 | $5,800 |
| 10 | $60,000 | $86,500 | $26,500 |
| 20 | $120,000 | $260,500 | $140,500 |
| 30 | $180,000 | $607,000 | $427,000 |
| 40 | $240,000 | $1,320,000 | $1,080,000 |
The message: Start early. Time is the biggest factor.
| Account | Contribution Limit (2024) | Tax Treatment | Best For |
|---|---|---|---|
| Traditional 401(k) | $23,000 ($30,500 50+) | Pre-tax in, taxed out | High earners now |
| Roth 401(k) | $23,000 ($30,500 50+) | After-tax in, tax-free out | Expect higher tax later |
| Traditional IRA | $7,000 ($8,000 50+) | Pre-tax in, taxed out | No employer plan |
| Roth IRA | $7,000 ($8,000 50+) | After-tax in, tax-free out | Under income limits |
| HSA | $4,150/$8,300 | Pre-tax in, tax-free out | Triple tax advantage |
| 529 Plan | Varies by state | After-tax in, tax-free for education | Kids' college |
| Mega Backdoor Roth | Up to $69,000 total | After-tax → Roth conversion | High earners |
For employees:
For self-employed:
For investors:
| Month | Action |
|---|---|
| January | Gather W-2s, 1099s, receipts |
| February | Estimate tax liability |
| March | File or extend (April 15 deadline) |
| April | Q1 estimated tax payment (if self-employed) |
| June | Q2 estimated tax payment |
| September | Q3 estimated tax payment |
| October | Extended filing deadline |
| November | Tax-loss harvesting review |
| December | Max retirement contributions, charitable donations, Roth conversions |
| January | Q4 estimated tax payment |
| Insurance | Need Level | Notes |
|---|---|---|
| Health insurance | Critical | ACA marketplace if no employer plan |
| Auto insurance | Critical (if driving) | Liability + collision/comprehensive |
| Renters/homeowners | Critical | Covers belongings + liability |
| Life insurance | Critical (if dependents) | Term life = 10-12x annual income |
| Disability insurance | Important | 60-70% income replacement |
| Umbrella liability | Important (high net worth) | $1M+ coverage, cheap |
| Long-term care | Consider (age 50+) | Protect retirement assets |
Do you have dependents who rely on your income?
├── YES → Buy term life insurance
│ ├── Coverage: 10-12x annual income
│ ├── Term: until youngest child is 25 or mortgage is paid
│ └── Type: TERM (not whole life — invest the difference)
└── NO → Skip for now, reassess when situation changes
Rule: Never buy whole life insurance as an investment. Buy term, invest the difference.
| Factor | Ready | Not Ready |
|---|---|---|
| Emergency fund | 3-6 months AFTER down payment | Drained by purchase |
| Down payment | 20% (avoids PMI) | < 10% |
| Debt-to-income | < 36% with mortgage | > 43% |
| Credit score | 740+ (best rates) | < 680 |
| Job stability | 2+ years steady income | Recent job change |
| Plan to stay | 5+ years | < 3 years (rent instead) |
| Monthly cost | < 28% of gross income | > 35% |
Monthly cost comparison:
Buy if: staying 5+ years AND total ownership cost < rent AND you want the stability. Rent if: < 5 years OR high mobility OR local market is overpriced (price-to-rent > 20x).
FI Number = Annual Expenses × 25
Based on the 4% rule (Trinity Study — 4% withdrawal rate has historically survived 30-year retirements).
| Annual Expenses | FI Number | Monthly Savings Needed (25 years at 7%) |
|---|---|---|
| $30,000 | $750,000 | $940/month |
| $50,000 | $1,250,000 | $1,567/month |
| $75,000 | $1,875,000 | $2,350/month |
| $100,000 | $2,500,000 | $3,134/month |
| Stage | Description | What Changes |
|---|---|---|
| Coast FI | Enough invested that compound growth alone will fund retirement by 65 | Can take lower-paying fulfilling work |
| Barista FI | Investments cover most expenses, need small income | Part-time work for insurance/extras |
| Lean FI | 25x minimal expenses saved | Can stop working, frugal lifestyle |
| FI | 25x comfortable expenses saved | Full financial independence |
| Fat FI | 25x generous expenses saved | Independence with luxury |
fi_tracker:
date: "YYYY-MM-DD"
annual_expenses: 0
fi_number: 0 # expenses × 25
current_invested: 0
fi_percentage: 0 # invested / fi_number × 100
monthly_savings: 0
savings_rate: 0
years_to_fi: 0 # calculated from savings rate
coast_fi_number: 0 # what you need now to coast to 65
coast_fi_reached: false
| Savings Rate | Years to FI |
|---|---|
| 10% | 51 years |
| 20% | 37 years |
| 30% | 28 years |
| 40% | 22 years |
| 50% | 17 years |
| 60% | 12.5 years |
| 70% | 8.5 years |
| 80% | 5.5 years |
The lever: Cutting expenses is 2x as powerful as earning more (reduces FI number AND increases savings).
| Strategy | Rate | Best For |
|---|---|---|
| Fixed 4% | 4% of initial portfolio, adjusted for inflation | Simple, traditional |
| Variable % | 3-5% based on market conditions | Adapts to market |
| Guardrails | 4% base, increase/decrease if portfolio deviates 20% | Balanced |
| Bucket strategy | 2 years cash + 5 years bonds + rest stocks | Sequence risk protection |
| Document | What It Does | Priority |
|---|---|---|
| Will | Distributes assets, names guardian for children | Critical |
| Power of Attorney | Someone manages finances if incapacitated | Critical |
| Healthcare Directive | Medical wishes if you can't communicate | Critical |
| Beneficiary designations | Override will for 401k, IRA, life insurance | Critical |
| Trust (optional) | Avoids probate, privacy, control | Important if assets > $500K |
monthly_review:
month: "YYYY-MM"
income_actual: 0
expenses_actual: 0
savings_actual: 0
savings_rate_actual: 0
budget_variances:
over_budget: []
under_budget: []
net_worth_change: 0
debt_paid_this_month: 0
investments_contributed: 0
action_items: []
| Dimension | Weight | 0-25 | 50 | 75 | 100 |
|---|---|---|---|---|---|
| Emergency fund | 15% | < 1 month | 1-3 months | 3-6 months | 6+ months |
| Debt management | 15% | High-interest debt, no plan | Plan exists | Only low-interest | Debt-free |
| Savings rate | 15% | < 5% | 10-15% | 15-25% | > 25% |
| Investment strategy | 15% | Not investing | Investing but no plan | Diversified + tax-optimized | Full optimization |
| Insurance coverage | 10% | Major gaps | Basic coverage | Solid coverage | Fully optimized |
| Tax optimization | 10% | No tax planning | Using some accounts | Maxing accounts | Full strategy |
| Net worth growth | 10% | Declining | Flat | Growing | Accelerating |
| Estate planning | 10% | Nothing | Basic will | Will + POA + directive | Complete plan |
| Mistake | Why It Hurts | Fix |
|---|---|---|
| No emergency fund | One crisis = debt spiral | Build $1K starter, then 3 months |
| Lifestyle inflation | Raises never turn into wealth | Save 50%+ of every raise |
| Paying minimums on high-interest debt | Interest compounds against you | Avalanche or snowball method |
| Not investing early | Missing compound growth | Start with $50/month today |
| Timing the market | Miss best days = miss most gains | Dollar-cost average, always |
| Whole life insurance | Expensive, bad returns | Buy term, invest the difference |
| No tax planning | Leaving thousands on the table | Max tax-advantaged accounts |
| Ignoring insurance | One event = financial ruin | Cover the catastrophic risks |
| Emotional spending | Budget-busting | 48-hour rule for purchases > $100 |
| Keeping up with others | Comparison drives overspending | Track YOUR net worth, ignore others |
finance/
├── net-worth-YYYY-MM.yaml # Monthly net worth snapshots
├── budget-YYYY-MM.yaml # Monthly budgets
├── debt-tracker.yaml # Debt inventory and payoff progress
├── investment-allocation.yaml # Current portfolio allocation
├── fi-tracker.yaml # Financial independence progress
├── annual-expenses.yaml # Sinking fund calendar
├── insurance-coverage.yaml # All policies
├── estate-checklist.yaml # Documents and beneficiaries
└── reviews/
├── monthly-YYYY-MM.md # Monthly review notes
└── annual-YYYY.md # Annual review