Optimal Personal Finance Management: The Science of Rational Choice Introduction: From Intuition to Algorithm Optimal personal finance management is not just about saving money; it is a comprehensive system of decision-making based on the principles of economic theory, behavioral psychology, and probability theory. Its goal is to maximize the utility (well-being and quality of life) of an individual throughout their entire life cycle, given resources and uncertainty about the future. It goes beyond everyday advice like "save 10%" and offers a scientifically justified approach to distributing income, savings, investments, and risk insurance. Basic Principles: The Whales of Financial Stability 1. The Time Value of Money and Discounting The fundamental economic law: a ruble today is worth more than a ruble tomorrow. It dictates the need for investment: money should work, compensating for inflation and generating income. Discounting is a mathematical operation that allows for the evaluation of future cash flows (such as a pension or rental income) in today's rubles. Optimal solutions always take into account this cost. Example: If the annual inflation rate is 7%, then 100,000 rubles under a mattress will be equivalent to 93,000 rubles today in one year. To maintain purchasing power, the return on savings should cover inflation. 2. Zero-Based Budgeting (ZBB) Unlike the traditional budget with inertia in spending, ZBB requires the justification and planning of each expenditure item from scratch every period (month). Income minus expenses, savings, and investments should equal zero. This creates full awareness and control over the cash flow. Practice: The popular 50/30/20 rule (Senator E. Warren) is a simplified model of ZBB: 50% of income on necessities (housing, food, transportation), 30% on wants (entertainment, hobbies), 20% on savings & debt repayment (savings/investments and repayment of debts beyond the minimum). Proportions are adjusted under individual goals. ... Читать далее