Read this article in full, the whole page and not a summary, including the
sections on rules and how the number is computed:
https://www.collegica.org/aging-well/budget-from-statements/
It describes a method for turning bank statements into one number: what a
year of my spending costs. Carry out that method yourself on the
bank exports in the folder I've pointed you at. Write and run code for the
arithmetic; don't add things up by eye.
Rules, taken from the article:
1. Read only that folder. Write your output to a new subfolder called
`budget-output`. In your replies give totals and merchant names, never
account numbers or full descriptions. Where the article is silent (what
counts as a complete month, how to treat quarterly items), say which choice
you made.
2. Load every file before concluding anything. Reduce each to Date,
Description, Amount (negative = money out), drop duplicates, and tell me
any file you couldn't parse, or whose totals you couldn't check, rather
than guessing.
3. Classify every transaction as exactly one of: transfer between my own
accounts, lending or its repayment, savings, pass-through, income, or
spending. A credit-card payment is not spending; the card purchases
already are.
4. Recurring spending is the median of complete months, times twelve. Show
the spread (lowest and highest month as a percent of the median) and say
whether it is steady.
5. If a fixed monthly payment clears on different days around month-end,
charge it monthly. Show the monthly figure both from the payments that
cleared inside the window and counting the payment that cleared just after
it, and say which you used.
6. Hold out large payments that do not repeat (about $1,000 and up) and list
them. Don't average them in and don't ignore them.
7. Do not decide what a statement can't tell you: whether a cheque or
e-transfer was a loan, what a large payment was for, whether something
was one-off, or whether it recurs yearly. List these as questions, largest
dollar amount first, and do not put any of them in the planning figure
until I've answered. Save each answer as a rule with the reason in
`budget-output/rules.md`. If that file already exists, read it first and
apply what it says before asking me anything.
8. Yearly costs a short window can't see (insurance, property tax, an annual
trip) come from me, not from your extrapolation. Ask for them.
9. Label each figure "measured" or "stated". Don't extrapolate a year from a
few weeks and present it as measured.
Output `budget-output/budget.md` with: recurring monthly and annual figure
and spread; one-offs; undecided large items; money lent and outstanding;
savings; income and savings rate; the total set aside as not-spending, by
kind; and the planning figure, which is recurring plus my stated yearly
items.
Then lay the budget out in `budget-output/advisor-form.md`, and the same as
`budget-output/advisor-form.html`, a page I can open in a browser. Use
exactly these groups and lines, in this order (lines separated by
semicolons), each with a figure per year and per month, a dash where there
is nothing, and a total for each group:
- Savings: Registered investments; Non-registered investments; TFSA; Other savings
- Housing: Mortgage; Rent; Municipal taxes; School taxes; Home insurance;
Condo fees; Furniture, accessories, tools; Other housing expenses
- Utilities: Electricity; Heating; Telephone; Mobile; Cable; Internet;
Other utilities
- Transportation: Public transit; Car loan / Lease; Gas; Car insurance;
Registration; Driver's licence; Parking; Maintenance and repairs; Taxi;
Other transportation fees
- Food: Groceries; Restaurants; Alcohol; Other food expenses
- Recreation / education: Cultural activities; Sports; Newspapers,
magazines, music; Movies and game rentals; Lottery tickets; Travel;
Courses; School fees; School supplies; Others
- Health care: Pharmacy; Dentist; Optometrist; Other health care expenses;
Life insurance; Other insurance
- Debt repayment: Credit card 1; Credit card 2; Line of credit; Personal
loan; Student loan; RRSP loan; HBP; Other loans
- Personal: Clothing; Hairdresser; Esthetician; Gifts; Pets; Tobacco;
Children's allowance; Banking fees; Alimony; Childcare; Other personal
expenses
Start it with a summary: income, any income taxes and payroll deductions
the statements show, savings, total expenses, and results (income minus
all of those). Mark any figure that is estimated rather than measured. An example of the finished layout:
https://www.collegica.org/events/monthly-budget/example
Start by telling me what files you found, which accounts they seem to be,
the date range, and any problems. Then stop and wait for me to say go.
