The "Personal Finance" uses a very simple account ideology. The basic concepts are accounts, articles and financial transactions.
Account - is a repository of money. For example, your wallet, bank account or a tin box buried in the garden. Account is characterized with three parameters: the account name, currency accounts and balance.
- Account name - allows you to distinguish one account from another
- Currency - "Personal Finance" is a split currency system and allows you to keep your accounts simultaneously in several currencies
- Account balance - shows how much money was in the account at the beginning of the accounting
The Article - is a source of forthcoming and cause of disappearance of money. For example, sources of the forthcoming of money are: salary, interest from bank deposits, gifts etc. The reasons for the disappearance of money are usually more abundant - food, clothing and footwear, transportation, and, finally, a computer, you work with right now. The article characterized by the following parameters:
- The Title - just a name
- The type of article - defines the financial transactions the Article may participate in
- Starting Debt - indicates the presence of debt for credit articles in the beginning of accounting
A financial transaction - any movement of money between accounts and articles. For brevity, we use the term transaction. The transaction has the following attributes:
- Date - when was it
- Type - what was it
- Source - where did the money come from
- Appointment - where they've gone
- Sum - how much they were
- Counting - how many of them were converted to base currency
- Note - here we can write the excuses about why it was done
The transaction can be of three types:
- Receipt - you have more money
- Expenditures - you have less money
- In transfer - the money moved from one account to another
Receipt transactions are:
- Income - we earned money
- Getting credit - we got into debt
- Repayment - a debt was repayed to us
So, the Expenditures are:
- Outlay - we spent the money
- Disburse the loan - we repayed a debt
- Giving money to credit - we lend the money
There is only one transfer operations:
- Transfer - money have changed the storage plase
At the beginning of our work the article and accounts are determined. Each transaction is logged. Reports and analysis allow to know how and where you stored the money, how much and where it was received and for what purpose the money spent, as well as who and how much you earn money, or who and how much money earns to you.