- What is Spending Solutions?
- Why should I use Spending Solutions?
- How do I get started?
- Can I influence the look and feel of the new Spending Solutions web site?
- Is my information safe?
- Where is the Registration Agreement?
- What is The Process?
- What do the column headings stand for?
- What if my income changes?
- How do I change my password?
What is Spending Solutions?
Spending Solutions is a place to learn about your day-to-day spending habits.
You can meet other people to discuss your money matters and improve the way you are managing your money.
Spending Solution will be providing a mechanism to get help from CPAs and Financial Counselors on a montly basis as part of a paid subscription.
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Why should I use Spending Solutions?
You should join because your future depends on your spending habits.
Spending Solutions will help you tame your spending.
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How do I get started?
Join Now. You can try it risk-free for a month.
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Can I influence the look and feel of the new Spending Solutions web site?
Feel free to send the Web Doctor any ideas you have for the site.
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Is my information safe?
When creating your accounts in the Spending Solutions system, please do not put real account numbers as names for your account.
This will ensure that the information you provide is relatively anonymous. For more information see our Privacy Statement.
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Where is the Registration Agreement?
Here is the Registration Agreement
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What is The Process?
The process for Spending Solutions starts with calculating your monthly take-home income. Most Americans spend more than their take-home income which
is why they are deep in debt. Your take-home income is your spending limit.
From monthly income, we will allocate monthly amounts for all your expense categories. The first category is SAVINGS; however, if you are in debt, the savings allocation will be used to pay off debt. After savings, we will then allocate the rest of your take-home income to housing, utilities, and so forth.
The calculator will keep track of your allocations so you will not go over your take-home income. You may need to make adjustments during your initial
allocations so that you stay within your limit of take-home income. Remember to always have an amount for savings / debt reduction. Ten per cent of your take-home income is a good start.
The on-line system will also calculate your personal H2O, or Hours to Obtain. Based on your input of income and hours worked in the first step of the process, you will have the eye-opening experience of seeing how long it takes you to bring home the dollars to buy the things you need and want.
Whenever a purchase is made, The Money Matrix performs dual entries. The first entry is the method of payment; there are three choices:
- Cash
- Check
- Credit Card
The other entry is the expense category for which the purchase was made.
If cash was used to make the purchase, your cash account will decrease by that amount. If a check was written to make the purchase, your bank account will decrease by that amount. On the other hand, if you purchased an item with your credit card, the credit card balance will increase by the amount of the purchase.
EXAMPLES:
1) You go to the grocery store and spend $50.00 with your credit card. Your credit card balance increases by $50.00, and your grocery expense category decreases by $50.00. Now you know how much money you have left to spend on groceries until the end of the month.
2) You pay your mortgage with a check. Your bank account decreases by the amount of the payment, and your mortgage expense category decreases by the amount of the payment. In this case, the mortgage amount should go to zero since normally there is only one mortgage payment in a month.
3) You receive your semi-monthly paycheck and you deposit it in the bank. Your bank account will increase by the amount deposited, and your income allotment for the month will decrease, since this represents the amount you are to receive during the remainder of the month. If you partially deposit your paycheck and cash the rest, your bank account will increase by the amount deposited, and your cash account will increase by the amount you cashed. Of course, your income allotment will decrease for the total of the amount you deposited and the amount you cashed.
4) You take cash out of the bank using your ATM. Your bank account decreases by the withdrawal, and your cash account increases by the amount of the withdrawal.
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What do the column headings stand for?
Explanations for Column Headings
AG - The chemical symbol for the element silver. AG stands for Allocated
Greenbacks. This column allocates your total take-home pay among all the
categories you select. Note there is no amount for your credit cards;
only the balance of your credit card account is listed in the AU column
(please see explanation below).
H2O - The chemical formula for water. H2O stands for Hours to Obtain.
This is how long you have to work in order to pay for the items listed
in your AG column. Taking the amount you allocated for each expense in
the AG column and dividing it by your hourly take-home wage derives the
amounts in this column. Your hourly take home wage is derived by your
input when you joined; it is the amount you entered for your annual
take-home wages divided by the number of hours you work annually. By
hitting the Prefs icon you can change these amounts.
AU - The chemical symbol for the element gold. AU stands for Accrued
Unspent. This is the total amount you have to spend for each of the
expenses listed. It also contains all your credit card balances. As you
spend, this amount decreases so you can see how much you have left to
spend in each expense. At the beginning of each month, the amount in the
AG column is added to the balance in the AU column from the end of the
proceeding month to derive the amount you have to spend for the new month.
FFG - This stands for Financial Fuel Gauge™. This pictorially depicts
how much you have left to spend in each category.
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What if my income changes?
Just go to settings and change your
Approximate Yearly Earnings to the new amount and click on update.
Your monthly income and savings will automatically be adjusted. You may want to reallocate your expenses.
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How do I change my password?
Just go to settings and change your password in both fields.
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