ReliaBalancetm is a money management system which helps us avoid accumulating unintended debt while still allowing us the convenience of using electronic forms of purchasing- including credit cards.
Traditionally, keeping track of expenses and keeping a current balance was as simple as keeping our checkbook register up to date. This assured that we always knew where we stood with our day to day finances. But the introduction of electronic transactions coupled with on demand credit has complicated this procedure. Previous personal finance techniques were not designed to address these issues. This left many of us unprepared to manage our finances in the electronic age.
This inadequacy in financial management techniques has led many of us to fall back on the very convenient but unreliable technique of just spending and adding it all up later when the credit card bill or bank statement arrives. Unfortunately, this approach usually leads to large amounts of unintended debt.
Although all debt is not bad, debt should not be entered into uninformed. The goal of ReliaBalancetm is to ensure that we are making informed financial decisions. If we make a purchase, we make it with the knowledge of how much money is available to us. If we do not have enough money to purchase something, we make the decision not to buy it or to use debt to buy it before the actual purchase is made. This process protects us from accumulating unintended debt.
ReliaBalancetm incorporates checks, debit cards, credit cards and electronic funds transfers into a single accounting register. Expenses from all these purchasing options are entered into the register, and a running balance is kept. Credit card expenses are subtracted from our balance at the time of purchase and set aside to pay the credit card bill. This accomplishes two things. It prepares us to pay the credit card bill when it arrives, but it also accounts for the expense in our running balance.
The importance of incorporating credit card purchases into our running balance is in our day to day spending decisions. Without this combined balance, we really don’t know how much money we have available to us without relying on debt.
ReliaBalancetm also includes a budgeting element which helps us budget for monthly expenses such as utilities, rent/house payments etc... The combination of these techniques provides a practical solution to day-to-day personal financial management.
Whether our goal is just trying to make ends meet or trying to save enough money to match our employer’s matched retirement benefit, the ReliaBalancetm is a tool designed to help us meet those goals.