Money Allocation Flowchart

One of the best thing we can do with our incomes is to deploy it as efficiently as possible. This means spending money on the highest priorities before paying for less important things. In 2015 I created a priorities list detailing how to spend one’s income to maximize financial success. The last time I updated that was chart was last year.

I recently came across another flowchart on the internet created by Reddit user u/atlasvoid. It has a lot more information than mine and is worth a read because there might be something in there that we didn’t think of before. Of course since everyone has different values and priorities, there can never be a once-size-fits-all income allocation flowchart. 🙂 They are only a reference point at best, based on people’s average financial situation. Feel free to move around certain nodes in the flowchart to better suit your own individual circumstances.

Here is the Canadian version. Click the flowchart to make bigger.


Click here to download the income flowchart for Americans, created by the same Reddit user.


Random Useless Fact

Some bartender added 1 cent to this customer’s bill in order to make the total come to $69.69

Author: Liquid Independence

Editor in Chief at Freedom 35 Blog.

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Personal Alpha Investments
Personal Alpha Investments
08/02/2017 4:46 pm

Man this is gold!

Btw, do you think of your investments in terms of capital allocation? I usually tend to buy stocks (growth stocks), that have a side of capital allocation to them. Interestingly, all the concepts of finance can be applied to all the areas be it investments, personal spending, personal finance (this just dawned on me, haha).

I remember this interview of Munger and Buffett, where they say their brains were wired to do the investing. He explains how his mind would logically attempt to solve any question in terms of decision trees (or an if statement).

Again, great stuff there.

08/06/2017 9:30 am

Like the flowchart…great stuff, thanks for sharing,

Passive Income Dude