Cash flow management system

• US 7,571,125 B2
• Filed: 03/26/2002
• Issued: 08/04/2009
• Est. Priority Date: 03/26/2002
• Status: Expired due to Fees

• Current Assignee: Robert L. Coyle
• Original Assignee: Robert L. Coyle
• Inventors: Coyle, Robert L.
• Primary Examiner(s): Zeender; F.
• Assistant Examiner(s): Thein; M.
• Application Number:
  US10/106,998
• Publication Number:
  US 20030187762A1
• Time in Patent Office: 2,688 Days
• Field of Search: None
• US Class Current: 705/30
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

An integrated cash flow management system and associated worksheets, including an expense worksheet and a money flow worksheet. The expense worksheet comprises a first medium having: a 3-circles block that includes alpha expenses (i.e., expenses paid every month or more frequently), a right rectangle block that include beta expenses (i.e., expenses paid less frequently than every month), and additional expenses blocks that include both alpha expenses and beta expenses. The 3-circles block may include expenses for long-term savings, investments, and insurance. The right rectangle block may include expenses for car replacement, vacations, gifts, and emergencies. The money flow worksheet comprises a second medium having: a debt workblock, a save-to-spend workblock, a savings icon, an investment icon, an insurance icon, a first directional flow indicator from the savings icon to the investment icon, and a second directional flow indicator from the insurance icon to the investment icon.

Claims

1. An integrated cash flow management method, said method comprising executing an algorithm on a processor of a computer, wherein the algorithm is stored as software on a computer readable storage medium of the computer system, and wherein said executing the algorithm comprises:

specifying an average income for a time interval;

obtaining alpha expenses and beta expenses from an expense data structure consisting of an expense worksheet stored on an electronic medium that is computer readable and is in the computer system, wherein the alpha expenses and the beta expenses are differentiated by the time interval such that the alpha expenses are paid periodically in accordance with a time period not exceeding the time interval and the beta expenses are paid periodically in accordance with a time period exceeding the time interval, wherein the expense worksheet includes distinct blocks of data comprising a 3-circles block listing 3-circles expenses, a right rectangle block listing right rectangle expenses, and additional expenses blocks collectively listing additional alpha expenses and additional beta expenses, wherein the 3-circles expenses are alpha expenses comprising at least one long-term savings expense, at least one investment expense, and at least one insurance expense, wherein the right rectangle expenses are beta expenses comprising at least one expense selected from the group consisting of an expense for replacement of at least one car, an expense for vacations, an expense for gifts, an expense for emergencies, and combinations thereof;

summing the 3-circles expenses and the additional alpha expenses to calculate a total alpha expense for the time interval;

summing the right rectangle expenses and the additional beta expenses to calculate a total beta expense for the time interval;

dividing a sum of the total alpha expense for the time interval and the total beta expense for the time interval by the time interval to calculate an average total expense for the time interval;

computing a cash flow for the time interval by subtracting the average total expense for the time interval from the average income for the time interval, wherein the computed cash flow is a negative cash flow or a non-negative cash flow; and

transmitting the computed cash flow to an output device of the computer system.

2. The method of claim 1, wherein the method further comprises determining a flow of money for the time interval, said determining the money flow comprising:

obtaining save-to-spend expenses from a money flow data structure, said money flow data structure being a money flow worksheet stored in the electronic medium, wherein the save-to-spend expenses in the money flow worksheet are the right rectangle expenses in the expense worksheet;

determining a first portion of the average income for the time interval as a money flow that finances the save-to-spend expenses;

determining a remaining portion of the average income for the time interval as a money flow into a checking account or an equivalent thereof, wherein the remaining portion of the average income for the time interval is equal to a difference between the average income for the time interval and the first portion of the average income for the time interval;

determining a first portion of the money flow into the checking account as a first money flow from the checking account or an equivalent thereof that finances debt expenses;

determining a second portion of the money flow into the checking account as a second money flow from the checking account or an equivalent thereof that finances the at least one long-term savings expense;

determining a third portion of the money flow into the checking account as a third money flow from the checking account or an equivalent thereof that finances the at least one investment expense;

determining a fourth portion of the money flow into the checking account as a fourth money flow from the checking account or an equivalent thereof that finances the at least one insurance expense; and

determining a fifth portion of the money flow into the checking account as a fifth money flow from the checking account or an equivalent thereof that finances the additional alpha expenses.

3. The method of claim 2, wherein said determining the first portion of the average income for the time interval, said determining the remaining portion of the average income for the time interval, said determining the first portion of the money flow from the checking account or an equivalent thereof, said determining the second portion of the money flow from the checking account or an equivalent thereof, said determining the third portion of the money flow from the checking account or an equivalent thereof, said determining the fourth portion of the money flow from the checking account or an equivalent thereof, and said determining the fifth portion of the money flow from the checking account or an equivalent thereof comprises using content in the money flow worksheet, wherein the content in the money flow worksheet comprises:

a debt workblock comprising the debt expenses;

a save-to-spend workblock comprising the save-to-spend expenses, wherein the save-to-spend workblock and the debt workblock are distinct from each other in the money flow worksheet;

a savings icon denoting a long-term savings account or an equivalent thereof configured to accumulate long-term savings that finances the at least one long-term savings expense;

an investment icon denoting at least one investment subject to market risk and configured to finance the at least one investment expense;

an insurance icon denoting at least one insurance expense selected from the group consisting of an expense for life insurance, an expense for disability insurance, an expense for long-term health insurance, and combinations thereof;

an income icon denoting the average income for the time interval;

a checking icon denoting the checking account or an equivalent thereof;

an additional alpha expenses icon denoting the additional alpha expenses;

a directional flow indicator directed from the income icon to the save-to-spend workblock, denoting that the first portion of the average income for the time interval is directed to the save-to-spend workblock;

a directional flow indicator directed from the income icon to the checking icon, denoting that the remaining portion of the average income for the time interval is directed to the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the debt workblock, denoting the first portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the savings icon, denoting the second portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the investment icon, denoting the third portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the insurance icon, denoting the fourth portion of the money flow from the checking account or an equivalent thereof; and

a directional flow indicator directed from the checking icon to the additional alpha expenses icon, denoting the fifth portion of the money flow from the checking account or an equivalent thereof.

4. The method of claim 3, wherein the method further comprises:

displaying the money flow worksheet on a computer screen of the computer system.

5. The method of claim 2, wherein the method further comprises:

adding the first portion of the average income for the time interval to at least one save-to-spend savings vehicle;

adding the remaining portion of the average income for the time interval to the checking account or an equivalent thereof;

funding the debt expenses with the first portion of the money flow from the checking account or an equivalent thereof;

funding the at least one long-term savings expense with the second portion of the money flow from the checking account or an equivalent thereof;

funding the at least one investment expense with the third portion of the money flow from the checking account or an equivalent thereof;

funding the at least one insurance expense with the fourth portion of the money flow from the checking account or an equivalent thereof; and

funding the additional alpha expenses with the fifth portion of the money flow from the checking account or an equivalent thereof.

6. The method of claim 5,

wherein said funding the at least one long-term savings expense comprises directing the second portion of the money flow from the checking account or an equivalent thereof to a long-term savings account or an equivalent thereof selected from the group consisting of a conventional bank savings account, a money market certificate, a money market mutual fund, a short-term treasury bill, a United States savings bond, and combinations thereof,

wherein said funding the at least investment expense comprises directing the third portion of the money flow from the checking account or an equivalent thereof to at least one investment subject to market risk selected from the group consisting of real estate, stocks, bonds, commodities, mutual funds, annuities, a self-employment retirement plan, a employee retirement plan, a 401(k) plan, an IRA, hard assets, and combinations thereof,

wherein said funding the at least investment expense comprises directing the fourth portion of the money flow from the checking account or an equivalent thereof to at least one insurance selected from the group consisting of life insurance, disability insurance, long-term health care insurance, and combinations thereof.

7. The method of claim 2, wherein the checking account or an equivalent thereof is selected from the group consisting of a conventional bank checking account, a money market checking account, a brokerage service checking account, and an Internet account.

8. The method of claim 2, wherein the at least one save-to-spend savings vehicle is selected from the group consisting of a save-to-spend checking account, at least one money market mutual fund, a save-to-spend savings account, and combinations thereof.

9. The method of claim 1, wherein the method further comprises:

displaying the expense worksheet on a computer screen of the computer system.

10. The method of claim 1,

wherein the 3-circles expenses consist of the at least one long-term savings expense, the at least one investment expense, and the at least one insurance expense, and

wherein the right rectangle expenses consist of the expense for replacement of at least one car, the expense for vacations, the expense for gifts, and the expense for emergencies.

11. An integrated cash flow management process, said process comprising:

performing the method of claim 1 resulting in the computed cash flow being said negative cash flow;

responsive to said computed negative cash flow, restructuring the alpha expenses and the beta expenses in the expense worksheet; and

after said restructuring, performing the method of claim 1 resulting in the computed cash flow being said non-negative cash flow.

12. An integrated cash flow management system comprising a processor and a computer readable medium coupled to the processor, said computer readable storage medium having an algorithm stored therein as software configured to be executed by the processor to implement an integrated cash flow management method, wherein the method comprises executing the algorithm on the processor, and wherein said executing the algorithm comprises:

specifying an average income for a time interval;

obtaining alpha expenses and beta expenses from an expense data structure consisting of an expense worksheet stored on an electronic medium that is computer readable and is in the computer system, wherein the alpha expenses and the beta expenses are differentiated by the time interval such that the alpha expenses are paid periodically in accordance with a time period not exceeding the time interval and the beta expenses are paid periodically in accordance with a time period exceeding the time interval, wherein the expense worksheet includes distinct blocks of data comprising a 3-circles block listing 3-circles expenses, a right rectangle block listing right rectangle expenses, and additional expenses blocks collectively listing additional alpha expenses and additional beta expenses, wherein the 3-circles expenses are alpha expenses comprising at least one long-term savings expense, at least one investment expense, and at least one insurance expense, wherein the right rectangle expenses are beta expenses comprising at least one expense selected from the group consisting of an expense for replacement of at least one car, an expense for vacations, an expense for gifts, an expense for emergencies, and combinations thereof;

summing the 3-circles expenses and the additional alpha expenses to calculate a total alpha expense for the time interval;

summing the right rectangle expenses and the additional beta expenses to calculate a total beta expense for the time interval;

dividing a sum of the total alpha expense for the time interval and the total beta expense for the time interval by the time interval to calculate an average total expense for the time interval;

computing a cash flow for the time interval by subtracting the average total expense for the time interval from the average income for the time interval, wherein the computed cash flow is a negative cash flow or a non-negative cash flow; and

transmitting the computed cash flow to an output device of the computer system.

13. The system of claim 12, wherein the method further comprises determining a flow of money for the time interval, said determining the money flow comprising:

obtaining save-to-spend expenses from a money flow data structure, said money flow data structure being a money flow worksheet stored in the electronic medium, wherein the save-to-spend expenses in the money flow worksheet are the right rectangle expenses in the expense worksheet;

determining a first portion of the average income for the time interval as a money flow that finances the save-to-spend expenses;

determining a remaining portion of the average income for the time interval as a money flow into a checking account or an equivalent thereof, wherein the remaining portion of the average income for the time interval is equal to a difference between the average income for the time interval and the first portion of the average income for the time interval;

determining a first portion of the money flow into the checking account as a first money flow from the checking account or an equivalent thereof that finances debt expenses;

determining a second portion of the money flow into the checking account as a second money flow from the checking account or an equivalent thereof that finances the at least one long-term savings expense;

determining a third portion of the money flow into the checking account as a third money flow from the checking account or an equivalent thereof that finances the at least one investment expense;

determining a fourth portion of the money flow into the checking account as a fourth money flow from the checking account or an equivalent thereof that finances the at least one insurance expense; and

determining a fifth portion of the money flow into the checking account as a fifth money flow from the checking account or an equivalent thereof that finances the additional alpha expenses.

14. The system of claim 13, wherein said determining the first portion of the average income for the time interval, said determining the remaining portion of the average income for the time interval, said determining the first portion of the money flow from the checking account or an equivalent thereof, said determining the second portion of the money flow from the checking account or an equivalent thereof, said determining the third portion of the money flow from the checking account or an equivalent thereof, said determining the fourth portion of the money flow from the checking account or an equivalent thereof, and said determining the fifth portion of the money flow from the checking account or an equivalent thereof comprises using content in the money flow worksheet, wherein the content in the money flow worksheet comprises:

a debt workblock comprising the debt expenses;

a save-to-spend workblock comprising the save-to-spend expenses, wherein the save-to-spend workblock and the debt workblock are distinct from each other in the money flow worksheet;

a savings icon denoting a long-term savings account or an equivalent thereof configured to accumulate long-term savings that finances the at least one long-term savings expense;

an investment icon denoting at least one investment subject to market risk and configured to finance the at least one investment expense;

an insurance icon denoting at least one insurance expense selected from the group consisting of an expense for life insurance, an expense for disability insurance, an expense for long-term health insurance, and combinations thereof;

an income icon denoting the average income for the time interval;

a checking icon denoting the checking account or an equivalent thereof;

an additional alpha expenses icon denoting the additional alpha expenses;

a directional flow indicator directed from the income icon to the save-to-spend workblock, denoting that the first portion of the average income for the time interval is directed to the save-to-spend workblock;

a directional flow indicator directed from the income icon to the checking icon, denoting that the remaining portion of the average income for the time interval is directed to the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the debt workblock, denoting the first portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the savings icon, denoting the second portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the investment icon, denoting the third portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the insurance icon, denoting the fourth portion of the money flow from the checking account or an equivalent thereof; and

a directional flow indicator directed from the checking icon to the additional alpha expenses icon, denoting the fifth portion of the money flow from the checking account or an equivalent thereof.

15. The system of claim 14, wherein the method further comprises:

displaying the money flow worksheet on a computer screen of the computer system.

16. The system of claim 13, wherein the method further comprises:

adding the first portion of the average income for the time interval to at least one save-to-spend savings vehicle;

adding the remaining portion of the average income for the time interval to the checking account or an equivalent thereof;

funding the debt expenses with the first portion of the money flow from the checking account or an equivalent thereof;

funding the at least one long-term savings expense with the second portion of the money flow from the checking account or an equivalent thereof;

funding the at least one investment expense with the third portion of the money flow from the checking account or an equivalent thereof;

funding the at least one insurance expense with the fourth portion of the money flow from the checking account or an equivalent thereof; and

funding the additional alpha expenses with the fifth portion of the money flow from the checking account or an equivalent thereof.

17. The system of claim 16,

wherein said funding the at least one long-term savings expense comprises directing the second portion of the money flow from the checking account or an equivalent thereof to a long-term savings account or an equivalent thereof selected from the group consisting of a conventional bank savings account, a money market certificate, a money market mutual fund, a short-term treasury bill, a United States savings bond, and combinations thereof,

wherein said funding the at least investment expense comprises directing the third portion of the money flow from the checking account or an equivalent thereof to at least one investment subject to market risk selected from the group consisting of real estate, stocks, bonds, commodities, mutual funds, annuities, a self-employment retirement plan, a employee retirement plan, a 401(k) plan, an IRA, hard assets, and combinations thereof;

wherein said funding the at least investment expense comprises directing the fourth portion of the money flow from the checking account or an equivalent thereof to at least one insurance selected from the group consisting of life insurance, disability insurance, long-term health care insurance, and combinations thereof.

18. The system of claim 13, wherein the checking account or an equivalent thereof is selected from the group consisting of a conventional bank checking account, a money market checking account, a brokerage service checking account, and an Internet account.

19. The system of claim 13, wherein the at least one save-to-spend savings vehicle is selected from the group consisting of a save-to-spend checking account, at least one money market mutual fund, a save-to-spend savings account, and combinations thereof.

20. The system of claim 12, wherein the method further comprises:

displaying the expense worksheet on a computer screen of the computer system.

21. The system of claim 12,

wherein the 3-circles expenses consist of the at least one long-term savings expense, the at least one investment expense, and the at least one insurance expense, and

wherein the right rectangle expenses consist of the expense for replacement of at least one car, the expense for vacations, the expense for gifts, and the expense for emergencies.

22. A computer program product comprising a computer readable storage medium having an algorithm stored therein as software configured to be executed by a processor of a computer system to implement an integrated cash flow management method, wherein the method comprises executing the algorithm on the processor, and wherein said executing the algorithm comprises:

specifying an average income for a time interval;

obtaining alpha expenses and beta expenses from an expense data structure consisting of an expense worksheet stored on an electronic medium that is computer readable and is in the computer system, wherein the alpha expenses and the beta expenses are differentiated by the time interval such that the alpha expenses are paid periodically in accordance with a time period not exceeding the time interval and the beta expenses are paid periodically in accordance with a time period exceeding the time interval, wherein the expense worksheet includes distinct blocks of data comprising a 3-circles block listing 3-circles expenses, a right rectangle block listing right rectangle expenses, and additional expenses blocks collectively listing additional alpha expenses and additional beta expenses, wherein the 3-circles expenses are alpha expenses comprising at least one long-term savings expense, at least one investment expense, and at least one insurance expense, wherein the right rectangle expenses ae beta expenses comprising at least one expense selected from the group consisting of an expense for replacement of at least one car, an expense for vacations, an expense for gifts, an expense for emergencies, and combinations thereof;

summing the 3-circles expenses and the additional alpha expenses to calculate a total alpha expense for the time interval;

summing the right rectangle expenses and the additional beta expenses to calculate a total beta expense for the time interval;

dividing a sum of the total alpha expense for the time interval and the total beta expense for the time interval by the time interval to calculate an average total expense for the time interval;

computing a cash flow for the time interval by subtracting the average total expense for the time interval from the average income for the time interval, wherein the computed cash flow is a negative cash flow or a non-negative cash flow; and

transmitting the computed cash flow to an output device of the computer system.

23. The computer program product of claim 22, wherein the method further comprises determining a flow of money for the time interval, said determining the money flow comprising:

obtaining save-to-spend expenses from a money flow data structure, said money flow data structure being a money flow worksheet stored in the electronic medium, wherein the save-to-spend expenses in the money flow worksheet are the right rectangle expenses in the expense worksheet;

determining a first portion of the average income for the time interval as a money flow that finances the save-to-spend expenses;

determining a remaining portion of the average income for the time interval as a money flow into a checking account or an equivalent thereof, wherein the remaining portion of the average income for the time interval is equal to a difference between the average income for the time interval and the first portion of the average income for the time interval;

determining a first portion of the money flow into the checking account as a first money flow from the checking account or an equivalent thereof that finances debt expenses;

determining a second portion of the money flow into the checking account as a second money flow from the checking account or an equivalent thereof that finances the at least one long-term savings expense;

determining a third portion of the money flow into the checking account as a third money flow from the checking account or an equivalent thereof that finances the at least one investment expense;

determining a fourth portion of the money flow into the checking account as a fourth money flow from the checking account or an equivalent thereof that finances the at least one insurance expense; and

determining a fifth portion of the money flow into the checking account as a fifth money flow from the checking account or an equivalent thereof that finances the additional alpha expenses.

24. The computer program product of claim 23, wherein said determining the first portion of the average income for the time interval, said determining the remaining portion of the average income for the time interval, said determining the first portion of the money flow from the checking account or an equivalent thereof, said determining the second portion of the money flow from the checking account or an equivalent thereof, said determining the third portion of the money flow from the checking account or an equivalent thereof, said determining the fourth portion of the money flow from the checking account or an equivalent thereof, and said determining the fifth portion of the money flow from the checking account or an equivalent thereof comprises using content in the money flow worksheet, wherein the content in the money flow worksheet comprises:

a debt workblock comprising the debt expenses;

a save-to-spend workblock comprising the save-to-spend expenses, wherein the save-to-spend workblock and the debt workblock are distinct from each other in the money flow worksheet;

a savings icon denoting a long-term savings account or an equivalent thereof configured to accumulate long-term savings that finances the at least one long-term savings expense;

an investment icon denoting at least one investment subject to market risk and configured to finance the at least one investment expense;

an insurance icon denoting at least one insurance expense selected from the group consisting of an expense for life insurance, an expense for disability insurance, an expense for long-term health insurance, and combinations thereof;

an income icon denoting the average income for the time interval;

a checking icon denoting the checking account or an equivalent thereof;

an additional alpha expenses icon denoting the additional alpha expenses;

a directional flow indicator directed from the income icon to the save-to-spend workblock, denoting that the first portion of the average income for the time interval is directed to the save-to-spend workblock;

a directional flow indicator directed from the income icon to the checking icon, denoting that the remaining portion of the average income for the time interval is directed to the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the debt workblock, denoting the first portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the savings icon, denoting the second portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the investment icon, denoting the third portion of the money flow from the checking account or an equivalent thereof;

a directional flow indicator directed from the checking icon to the insurance icon, denoting the fourth portion of the money flow from the checking account or an equivalent thereof; and

a directional flow indicator directed from the checking icon to the additional alpha expenses icon, denoting the fifth portion of the money flow from the checking account or an equivalent thereof.

25. The computer program product of claim 24, wherein the method further comprises:

displaying the money flow worksheet on a computer screen of the computer system.

26. The computer program product of claim 23, wherein the method further comprises:

adding the first portion of the average income for the time interval to at least one save-to-spend savings vehicle;

adding the remaining portion of the average income for the time interval to the checking account or an equivalent thereof;

funding the debt expenses with the first portion of the money flow from the checking account or an equivalent thereof;

funding the at least one long-term savings expense with the second portion of the money flow from the checking account or an equivalent thereof;

funding the at least one investment expense with the third portion of the money flow from the checking account or an equivalent thereof;

funding the at least one insurance expense with the fourth portion of the money flow from the checking account or an equivalent thereof; and

funding the additional alpha expenses with the fifth portion of the money flow from the checking account or an equivalent thereof.

27. The computer program product of claim 26,

wherein said funding the at least one long-term savings expense comprises directing the second portion of the money flow from the checking account or an equivalent thereof to a long-term savings account or an equivalent thereof selected from the group consisting of a conventional bank savings account, a money market certificate, a money market mutual fund, a short-term treasury bill, a United States savings bond, and combinations thereof,

wherein said funding the at least investment expense comprises directing the third portion of the money flow from the checking account or an equivalent thereof to at least one investment subject to market risk selected from the group consisting of real estate, stocks, bonds, commodities, mutual funds, annuities, a self-employment retirement plan, a employee retirement plan, a 401(k) plan, an IRA, hard assets, and combinations thereof,

wherein said funding the at least investment expense comprises directing the fourth portion of the money flow from the checking account or an equivalent thereof to at least one insurance selected from the group consisting of life insurance, disability insurance, long-term health care insurance, and combinations thereof.

28. The computer program product of claim 23, wherein the checking account or an equivalent thereof is selected from the group consisting of a conventional bank checking account, a money market checking account, a brokerage service checking account, and an Internet account.

29. The computer program product of claim 23, wherein the at least one save-to-spend savings vehicle is selected from the group consisting of a save-to-spend checking account, at least one money market mutual fund, a save-to-spend savings account, and combinations thereof.

30. The computer program product of claim 22, wherein the method further comprises:

displaying the expense worksheet on a computer screen of the computer system.

31. The computer program product of claim 22,

wherein the 3-circles expenses consist of the at least one long-term savings expense, the at least one investment expense, and the at least one insurance expense, and

wherein the right rectangle expenses consist of the expense for replacement of at least one car, the expense for vacations, the expense for gifts, and the expense for emergencies.