An Experience in Personal Financial Planning : The Maven Charts

Abstract

Many self-employed and small entrepreneurs have a common problem: the inability to plan personal finances with a varying and uncertain income. "How can you plan for next year when you don't know what will happen tomorrow" is the profundity. The objective of planning is not to predict the future. It is to provide for the many events that are certain so that the few unforeseen can be managed with lesser difficulty. Almost ninety percent of everyday expenses are predictable for anyone. If laid out before hand, it may be possible to reduce or increase or juggle between them. The Maven Charts are three simple formats: An expense chart shows the money flow of the family. An annual chart lays the events of the year. The third chart lays out the events of a lifetime. For anyone flipping through the paper the charts are ordinary wisdom. Those who did the exercise found it magical.