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It's times like these I wished I had some programming experience. I came up with a budget self-questionnaire that can help people stay on track with their finances. This is long, but I hope anyone who has programming experiences can take this idea and implement it.
I'm a student. Still dependent, but I do have a variable income and my own checking/savings/credit card. I would like to keep closer control over my finances.
I'm looking for a software or spreadsheet template that allows me to add specific budget tracking plans (for a lack of better term). It should use a questionnaire that gathers some information about the product/service/etc I want to save for. After collecting the data it then puts it into an advanced algorithm and calculates a "saving plan" with variable percent that fluctuates according to deposited income and other factors I'll mention below. That percent takes whatever most recent income I deposited and automatically subtracts the amount needed to save for that that product.
For example, I want to save up for a new laptop computer:
1. Multiple choice questionnaire that asks the following. I know there may be some logical contradictions with some of these questions so this isn't stated absolutely.
Items a,b,c are ranked in decreasing importance (default). The importance of the items can be changed according to user preference. This allows greater flexibility. For example, if the user doesn't have a dire need for something but wants it very soon they can set item b as the primary criteria. Therefore, "Savings/budget plans" that score low on the needs scale, are required immediately and are the least expensive are likely to be designated the highest overall rank.
a. On a scale from 1-10 with one being the most dire need rate how much you need/require this laptop (need). *6*
b. How soon do you need/want this laptop (essential)? *We'll say within 3 years (36 months)* The factor of time needs a frame of reference. It's sigficance is relevant to the times of other "budget/savings plans". So, if I also wanted a new phone which I rank at a need of 6 but needed it within a year, the phone would be higher in rank than the laptop.
c. Estimated Price or How much you want to invest in the laptop (price)? *At most $1800* (Could include other criteria like 'at least' or 'exactly'). At least criteria would continue saving for the product even after reaching the limit until it reaches a second limit, (e.g. $2000)
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Item d is an optional criteria that can give greater control for how funds are cleared for a the laptop.
d. How often should funds be cleared for the laptop. This part can and will get a little tricky as it may include Boolean options. For example, "funds should be cleared for this laptop: Total percent of running balance, once every month, if most recent deposit exceeds $x." Or we may opt for, "funds should be cleared if last x deposits averages at least x amount of dollars." Or, "funds should absolutely be cleared every month at top of the month carry over negative balances if funds not immediately available. There are certainly many other combinations that would be possible.
2. The application should be able to allow the user to arrange the ranks of each "savings/budget plan" or completely delete them for greater personalization. The questionnaire above is used as an automated process to rank "budget/savings plans" logically. Sometimes, people want something over something else and so they are granted the ability to move modify ranks superficially.
a. Say a year down the line I find out I don't need a laptop anymore because I get one as a gift. I want to reallocate all the money saved up for it so far. If I come to delete it I can designate a certain category the funds are transferred to or the funds can go back to the general pool savings account, or the funds can be equally divided over all "savings/budget plans".
b. The ranking system should allow for expediting certain "savings/budget plans", temporarily disabling some (with conditions), or delete them and distribute the leftover funds intelligently.
3. The final principle of this application is the hardest to implement. This is the algorithm / A.I. of the application to dynamically change the rate at which funds are cleared for a certain "savings/budget plan" according to all the aforementioned criteria. It should be able to take user input from item d and fulfill it along with maintaining ranks, etc.
--There are other useful manifestations this application can take. The user can set certain permanent savings plan, say, for a rainy day fund (set rank -1). If such occurs then items b and c wouldn't be required and the user would have to fill item d to clear funds based on certain criteria to fill the rainy day/emergency fund. -1 ranks would take the utmost precedence over all other funds unless changed. If the rainy fund doesn't suffice when an accident happens and money has to be cleared from other funds then the program can extract the funds dynamically from each savings plan according to the stipulations above (less important saving plans would contribute more money). Other permanent ranks could be certain monthly payments for rent, electric, cable, cell phone, etc.
--The application could also allow for virtual ranks. Say that you have certain essential monthly payments that you may not necessarily "need." For example you're paying for satellite TV service you don't need nor really use. Setting up a virtual rank would allow you to set Satellite TV budgeting as a permanent rank but also adding a secondary rank. The software would then forecast how much quicker you would reach your other "budget/saving" goals if you weren't paying for it.
--Application shortfalls: Probably wouldn't be able to factor debts unless user makes a specific "savings/budget plan" for a static debt. Does not factor in inflation but default rate can be set at 3%.
Any programmers out there? Let me know what you think. I have more ideas about developing the app. If only I had listened during my Java programing class in high school
Last edited by saqer; 03-18-09 at 03:29 AM.
03-18-09 02:28 AM
