Hello all!
I am doing some user research for a side project of mine and wanted to ask about how you do your financial planning? I started building an app with the idea to help people understand their money better with financial wellness and scenario planning, but I am still learning about the Swiss market more deeply as I am an expat myself. What tools are you currently using that makes your financial life easier?
Newspapers, from Switzerland, global coverage and countries of interest.
Talking to people, trying to diversify the sources of info. Even listening to the hyperboring speeches of the retirememt commision (2nd pillar) at my job.
Finally, trial and error by myself.
What’s so special about Swiss market? The process is exactly the same everywhere.
Anyway, IMO planning is dead simple, a scripting kid can write an app that will show you best/worst projection of your wealth based on assumed interest rate and contribution. The crux lies in being well informed to manage your wealth, make the right strategy adjustments.
Another side, very simple, is tracking your spending. It’s a nitpicking, sure, but all the banking apps are useless, they just categorize your spending based on the POS (merchant) not by any meaningful category to you. When I spend 400 chf at coop, I’d like the ability to tap assign in the CC app that 250 goes to category “party”, 100 to “bad addictions I want to cut”, and only the rest is just the plain grocery category
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If you’re looking for advice, I agree that expense tracking the first thing and then
Operationally, I have a friend that over time has developed a reasonably sophisticated custom tool in Excel to track everything, and I used to have similar tools for CF planning. For the last 3 years I’ve been using Buxfer on a paid plan (comes to about 5-6 CHF/mo) and it’s been really useful for my purposes. Primary use is to track expenses, but can also track investments, and I kind of use it as my personal accounting tool.
Just use something that you feel comfortable with, and then take it from there. Having an understanding of how much comes in and more importantly how much goes out is the major first step and will give you a good sense of what you’re doing and if it makes sense for your lifestyle and what you’re trying to achieve.
One very important question no app can help with is “how do you define success?”
It’s a very personal question, and all the planning and execution depend on this answer.
It’s hard to commit to a plan in the long by only following recommendations of an app/influencer. It’s easier if the motivation is personal.
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So much this.
The whole thing can be daunting, especially when you first become independent from parents, and start realising you are now leading your life; I know it kinda was for me.
I was winging it, and then thought I need some structure, and there heuristics can help, but can also tie you to stuff that don’t fit you. 1/3 of income on accommodation is a good upper limit, but some people are perfectly happy with something a lot cheaper. Or some may stretch that a bit because they don’t spend money on anything.
That’s why it’s important to see what you’re making and spending now, how you expect that to evolve (e.g. if you’re planning to have a family childcare can decimate what is disposable income now), and see if you’re happy with this situation or if you realise some things just ain’t worth it.
good points about the “success” definition. The app could track external factors which can invalidate your success even though your current financial performance is maintained. For example interest rate change, electricity price, heating costs, changes in tax law…