Patent Application
20140297488
In the prior art, there have been many computer software packages to perform personal budgeting functions. Those packages can accurately track a user's income and expenses compared to a prepared budget, allowing to monitor when expenses approach or exceed a budgeted maximum.
A fault with each of those prior art packages is that refunds are either ignored entirely or not represented in a meaningful way. Refunds are not new income, so they do not fall into the income category. Refunds are not expenses, so they do not properly fall into the expense category. Therefore it is common practice for prior art personal budgeting software packages to simply ignore refunds. This is a problem because it causes a divergence between actual cash on hand (bank account balances) and the traditional calculation of income minus expenses.
A method has been invented to accommodate negative budgeting. This method can be referred to as a method or system for handling refunds in a personal budgeting system.
In addition to properly calculating and properly categorizing refunds, a novel mechanism for displaying refunds in graphical format has been invented. These and other features of the invention will become clear upon persons of ordinary skill in the art upon reading this document in light of the appended drawings.
The embodiments of the invention are illustrated by way of example, and not by way of limitation, in the figures of the accompanying drawings.
a-1d generally depicts how refunds may be handled in a budgeting system.
The invention can be implemented as software that runs on a digital computer. The state of technology and trends as of the time of writing this document indicates that digital computers running software will be a preferred implementation for many years to come. For the purposes of this document, the term “digital computer” includes desktop computers, laptop computers, tablet computers, hand-held mobile electronic devices (including so-called smart phones), other mobile electronic devices, networked computers, mainframe computers, and other computing devices. Other computing devices may include analog computing devices, quantum computing devices, biological computing devices and other computing devices. Although the invention can be implemented as software operating on a computing device, the invention can also be implemented as firmware or it may be implemented in hardware or otherwise as desired. Such implementations are intended to be within the scope of the invention. Commonly a computing device for using the invention will include a display device such as a screen or other image on which information can be displayed to a user, an input device through which a user can control the computing device, and a processor for carrying out computations as required by the invention. The computing device may also include a means for carrying wireless transmission and receipt of data, dynamic memory, static memory, a power source such as a battery, and other features. In the field of personal financial management (“PFM”), it is desirable to provide budgeting systems which allow users to budget for and track their income and expenses. The reasons why budgeting is desirable are omitted from this document. However, assuming that a user wishes to prepare and track a budget, then the invention provides clear advantages in being able to computationally handle and visually display refunds in a manner that it is intuitive, understandable and useful to users Referring to
The spending wheel 101 depicted is for a parent category of expenses, such as “Automobile and Transportation”. That parent category may have many child categories such as automobile payment, airline tickets, gasoline expenses, automobile repairs, automobile insurance, etc. In a spending wheel such as this, the total circle or spending wheel is made up of the absolute values of the parent categories (such as Expense A, Expense B, etc.). The refund label points to the refund section of the parent category which takes up space equal to the absolute value of the refund credit which results from the refund. The gross amount of the refund may be indicated numerically or by the size of the refund label as desired.
Referring to
As a general note, the outer ring can represent the parent category and the inner ring can represent the child budget, or vice versa, thus providing the user with information pertaining to both.
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As a general matter, a debit will be considered an expense, which is a positive number in the spending wheel. A credit is a refund which is a negative number in the spending wheel.
There are 3 primary rules to consider using when carrying out refund calculations using the invention.
Rule 1: The spending wheel cannot have a negative number. In other words, if a category of a spending wheel contains a refund (such as product return, rebate, etc.) then it will only be displayed if the refund exceeds the expenses in the category. In the case of a parent, if a parent is negative it will not display its children even though they are positive. And in the case of a child, if a child is negative, it will not be displayed within the parent.
Rule 2: If the sum of a category is positive, then the parent/child segment will display the sum in the wheel. For example, If there were $100 in expenses with $90 in returns, then $10 would be shown on the spending wheel.
Rule 3: If the sum of a category is positive then the parent/child will display all the positive and negative transactions in the list. For example, if there is $100 in expenses with $90 in refunds show a credit of $10.
Referring to
[As another example, consider the situation where a person received a refund of $7000 from their mortgage company this month. That person also had $800 in utility expenses, so they have a Home parent category expense of −$6200. To fully inform the user of a budgeting impact of this information, the software needs a way to show both the utility expense and the refund. When the total parent refund is less than the parent expense, then this is not an issue as the software simply shows the expense minus the refund. However, when the refund is more than the expense it is necessary to show the refund minus the expense. This provides a refund tag that hovers over that slice of the spending wheel. Any time the user drills into a parent category, then any child that is a refund will show with a refund tag if it also meets the above criteria.
Continuing the above example, if the total household expenses for the month, including the $800 in utility expenses, are $10,000, and the refund is still $7,000 then the total Home expenses are $800 from the utilities category and $7,000 in the mortgage category, then the total pie would represent $15,400 with $6200 making up the Home parent with a refund tag hovering over it. When the user clicks on the Home parent, the children show up as a $7,000 Mortgage child with a “REFUND” in its line item, and a refund tag on the spending pie, and a minus sign beside the $7,000 refund (or some other representation that it is a negative amount in the budget) so that its total with the $800 in utilities expense is $−6200. This figure will represent the size of the parent in the parent pie.
While the present invention has been described and illustrated in conjunction with a specific embodiment, those skilled in the art will appreciate that variations and modifications may be made without departing from the principles of the invention as herein illustrated, described, and claimed. The present invention may be embodied in other specific forms without departing from its spirit or essential characteristics. The described embodiment is to be considered in all respects as only illustrative, and not restrictive. The scope of the invention is, therefore, indicated by the appended claims, rather than by the foregoing description. All changes which come within the meaning and range of equivalency of the claims are to be embraced within their scope.
