Get financial freedom

How Aimiya works. Step 1 of  2

Often we set ourselves goals which depend on our financial savings. Sometimes saving money is a lengthy process, and the longer it is the more dangerous it becomes to get off course and miss the target. Are there any rules to guide this process in order to make it more predictable and less risky? Aimiya offers you an answer to this question.

Let’s consider a simple example. Say, in the beginning of year 2008 your bank account balance was $9,000, but by July 2008 you need to have $15,000 in order to purchase a car or to pay for your studies.  To enter this information into the program you need to open the following windows (see Figure 1 & Figure 2).

 

Fig 1 [Balance\Bank\ Bank Name & AccountNo\New]

Fig 2 [Main Target\New] – Target Setup: amount, start date, end date, method

 

When the financial aim is set the program will calculate the RoadMapin order to reach it. The aimed for amount will be split in interim monthly amounts.

 

Fig 3 [Target\Values] –amount distribution

Fig 4 [Target\Values\Details] – formula of your success

 

Now the distant and seemingly unreachable goal of $15,000 has turned into a more modest and defined amount of $9,987 you need to have by Jan 02, 2008 in order to meet the desired target of $15,000.

Figure 4 demonstrates that the interim amounts are calculated monthly with 3% inflation allowance.

 

Let’s say you saved monthly exactly $1,100. As a result you have saved $600 more than you planned. Assessy our progress in saving:

 

 

Fig 5 – main menu

Fig 6 [Target\Nexttarget] – progress in time

Fig 7 – summary diagram of your progress

 

Financial goals could be very different:

- saving money towards a down payment for a property or a vehicle

- keeping your savings intact in times of general financial instability

- keeping you assets profitability on a certain level

- forming a pension fund

 

You know better of all what is important for you in life. Transform it into a financial goal and record it in your cell phone! Set it up and monitor the object of your main interest, though if you take it seriously you could set up and follow several objects at the same time.

 

Aimiya allow for different possibilities of setting your goals:

 

 

Fig 8 – select target option

 

Target Amount

This option works well for short periods of time when inflation could be overlooked.

Target Setting Example:

- The easiest way to say: I want to have $15,000 by 07/01/08.

- Simple way for young generation to start saving from nothing.

- To hit simple and relatively small targets: down payment for a property, purchase a car or a cruise.

 

Target in current terms

This option sets a goal for a certain date in time for an equivalent of a certain amount at its today’s value. Foe example you could say that by 07/01/18 you want to have the same value of your money as is the value of $100,000 today. Taking in consideration 3% inflation the desirable amount at 07/01/18 will be calculated as $162,113. If inflation rate changes the software will automatically recalculate the amount and you will always know how close you are to your goal.

With this option you could plan both security of your savings and your pension fund formation.

 

Annual %

This option is good for projection of summary profitability levels for all your assets for a few years ahead. For example, setting 15% value you indicate that the annual assets growth is 15%. In this case the software will not allow for inflation when calculating the end result.

You may use any percentage of your choice when it comes to determining the growth ratio for your assets. Let’s say you have $10,000 and you want this money grow in value 20% per annum. The software will give you an answer to the question of how effective is your personal finance management is or how effectively your money is managed by a fund you entrusted it to. With Aimiyayou will always have at hand the historical data and the future goals. It will help you to evaluate recommendations received from specialists regarding your finances.

 

How Aimiya works. Step 2 of 2

 

In order to reach your goal you can operate all types of assets: monetary (e.g. cash, bank & deposit), securities(e.g. funds, stocks & bonds) and non-monetary (e.g. real estate, own business), as well as allowing for loans interfering with you journey to success.

Eachtypeofassets could be monitored by places of care.By places of care we mean the institutions you placed your funds with for safe keeping or investment.  For each place of care of your assets you can have balances (or their value) displayed at any date. By the balances we mean the actual funds available or the monetary equivalent of any property value. With this there is no need to maintain a routine reporting of all transactions in relation to your revenues and expenses. 

 

Monetary Assets.

 

Fig 9 – balance

Fig 10 – list of “Depo” items

Fig 11 – “Depo in Bank” history

 

Cash– the money you have in hand ready for saving. Under Cash we do not mean your pocket money, nor the money set aside for emergencies. Cash could also be monitored by places of care, if necessary.

 

Bank– the money you keep on your current bank account, accessible at all times or during the time limited by your bank opening hours. In this group we do not include saving or deposit accounts as such accounts normally presume limited access to funds where banks would charge you a penalty for early withdrawals.

 

Depo– balances on your deposit accounts or deposit certificates. Depositsaremonitoredbycontractreferencesandamounts. Neither accrued nor paid interest is accounted for. When interest is received you could add it to your overheads or increase the value of any other asset, for example: bank account.

 

 

Securities

Stock– shares you own. Apart from the total value of your Stock you could register a quantity of shares and unit current price. You could re-enter the values at any time.

Bonds – bonds you own. You can register their quantities, prices and values. Future income on retirement of bonds is not being calculated. When the funds are received you could allocate them to overheads or increase value of any other asset.   

Funds, including program 401(k) – total amount accumulated in your pension fund or in other funds managing your finances, if you use their services.

 

 

 

 

 

 

Fig 12 – create new balance record for the stock item

 

Non-monetary Assets.

Real Estate– immovable property which brings you income. By this we mean objects you are happy to sell at any time in order to raise financing. Here we cannot be talking of a house or a flat you live in.

Own Business– assessed value of your business. Perhaps, this is the most complex asset from the market value point of view. We recommend recording its value in amount of your investment in the business as any evaluation assessment would have to be based on financial reports of a certain business, where the dividends, alike Securities, would have to be put through your bank account.  

 

Debts.

Your current liabilities might slow down your progress on the way to your goal. The amount of Debtsis always deducted from the total assets’ value. They decrease your current balance of Assets and appear in the main menu with a negative sign. In order to register a liability you would have to keep it under a certain reference against which you will enter changes made by each repayment. If you have several loans, each of them could be monitored separately. Neither accrued nor paid interest is accounted for as it would form a part of your Bank or Cash movements.

 

 

Historical data illustrating your balance movements could be displayed in absolute figures of as a diagram. You could also form a summary chart for all types of your assets.

   

Fig 13 – balance history

Fig 14 – diagram of balance history

Fig 15 – summary diagram

Fig 16 – legend of summary diagram

 

 

How Aimiya works. Tips and remarks.

 

Calculation on achievement of any financial goal begins with the total amount of Balanceat the start date of the calculation. This amount could be set as zero, however in this case you should not chose the option Annual%. The target amount must be higher or lower than the Balance amount.

You can simultaneously monitor several ways of reaching your goal. For example: your preferred scenario, an optimistic and a pessimistic one.  Use Settings\Scenario option where for each of them you could choose different settings from Target menu, compare them against others or the Balance, generate comparison charts. Please note, that the demo sequence is preset for only one of those scenarios.

Fig 22 – list of scenarios

 

 

 

 

 

 

 

We recommend to users the following order of entering information:

- Specify settings: font size, interface language, currency symbol.

- Fill in Balances of your assets and liabilities.

- Set up your goal.

- Correct and update indices (if necessary)

 

 

We would recommend to update the data not less often than once a month.

 

The end date could be linked to a particular event in your life: extending family, starting up your own business, retiring. This way it’s easier for you to make decisions on goal corrections, if such necessity arises.

 

Project Aimiya intends to prompt you to acquire indispensable additional knowledge, particularly regarding investments and making your assets grow in value. Our software will help you to address all of the following questions: How? Why? What does it do? How to make it profitable? How to decrease outgoings? How to increase gains? How to reach my goal? However, neither our software nor anybody else could give you a 100% true formula of financial success. Everyone has their own recipe.

Discussion Forum is accessible for all registered users of Aimiya(you can access DiscussionForum from the main page). Here you could share your experiences in achieving your goals and discuss your questions.

 

Remember, Aimiyais only a convenient tool for storage and processing of your data.  We do not consider money saving as an end in itself. We invite you to dream, to project and to invest. Leave the rest with Aimiya.