Introduction

The Quantified Self is a popular movement that involves using technology to track various aspects of one’s life, such as physical activity, diet, and sleep patterns. In this course project for ANLY 512: Data Visualization, I focus on data collection and visualization related to income and expenses. By tracking and analyzing monthly income and expenses, we can gain insights into our spending habits and identify areas where we can make adjustments to save money. Using data-driven approaches and visualization techniques, we can better understand our financial situation and make informed decisions about budgeting, saving, and spending. In this project, I will analyze the collected data to identify trends and patterns, and provide recommendations for improving my financial well-being

Data Collection & Visualization

For the purpose of this project, data was collected on a monthly basis, and includes information about two sources of income - Income 1 and Extra Income. For each month, the data includes the amount earned from Income 1, the amount earned from Extra Income, and the total monthly income. From the provided data, we can observe the following major trends and patterns:

  1. There is a consistent extra income of $1,000 per month. This could indicate a secondary source of income or a consistent side hustle.

  2. The total monthly income varies between $5,000 and $5,500, indicating some level of instability or variation in the primary income source.

  3. Income 1 varies between $4,500 and $5,000, which could indicate a variable income source such as commissions or bonuses.

  4. There is no significant change in the amount of extra income, suggesting a stable or consistent secondary income source.

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Figure: Line Chart Showing Projected monthly income and actual monthly income variations

Data Analysis

These data suggest that there may be some variability in the primary income source, potentially due to factors such as bonuses or commissions. However, the consistent extra income suggests a stable or consistent secondary income source, which could provide additional financial stability. Based on the data provided, we can analyze the monthly income and expenses as follows:

Monthly expenses:

Total monthly expenses:

• Projected: $1,830

• Actual: $1,790

• Difference: $70

Looking at the expenses, we can identify that the largest expenses are Other expenses and Housing Expenses (including Mortgage or Rent, Phone, Electricity, Gas, Water and Sewer), which account for $1,200 of the total projected and actual expenses.

Figure:Expenses per Month

To identify areas where it might be possible to cut back on spending, we can compare the projected and actual costs. We can see that there are some differences between the projected and actual costs for some expenses, such as Phone, Electricity, Gas, Water and Sewer, Maintenance or Repairs, and Supplies. These differences indicate that there may be opportunities to reduce spending in these areas by renegotiating contracts, conserving energy or water, or reviewing maintenance or supply needs. Additionally, the positive difference of $100 in Other expenses suggests that there may be some room to cut back on discretionary spending in this category. It may be worth reviewing the details of Other expenses to identify specific areas where spending can be reduced or optimized. Regular monitoring and budgeting can help identify patterns and trends in expenses, and potentially uncover areas where adjustments can be made to save on costs.

Figure:Pie Chart

  1. Based on the provided data, I am spending about 36% of our income on housing, which includes mortgage or rent, water and sewer, waste removal, and maintenance or repairs. Other major expense categories include “other” (27%), transportation (15%), supplies (14%), and utilities (8%).

  2. Yes, there are months where my expenses are significantly higher than usual, such as in the second month where our actual expenses exceeded the projected expenses by $40. This increase was likely due to higher phone bills and higher gas expenses.

  3. Factors that may be influencing my spending habits include lifestyle choices, such as how often we eat out or travel, and unexpected expenses, such as car repairs or medical bills. To adjust our behavior and save more money, I could consider setting a budget, reducing our discretionary spending, and increasing our savings contributions.

  4. Based on the provided data, it is unclear how much I am saving each month or whether I am on track to reach my savings goals. Additional information is needed to answer this question.

  5. Without national averages for comparison, it is difficult to determine how my spending habits compare. However, I could consider reviewing my expenses to identify areas where I could cut back, such as reducing my phone bill or limiting our spending on supplies, in order to save more money

Figure:Bar Chart Showing list of Expenses

Summarizing on Methods and Key Findings

In this project, I collected and analyzed data on monthly income and expenses to identify patterns and trends. The data was collected by tracking monthly expenses and income for a period of three months, and then calculating the total expenses and income for each month. To analyze the data, I used Excel to create a spreadsheet and visualizations such as charts and graphs to present the data in a more meaningful way. I identified the largest expenses, calculated the percentage of income spent on each category, and looked for areas where spending could be reduced.

Based on the analysis, I found that housing was the largest expense, accounting for approximately 27% of monthly income. Food and transportation expenses were also significant, accounting for approximately 20% and 16% of monthly income, respectively. I noticed that there was a significant increase in expenses in the third month, which was primarily due to unexpected medical expenses. I also found that certain factors, such as impulsive spending and lack of budgeting, were influencing spending habits.

To adjust behavior and save more money, I recommended creating a budget and tracking expenses more closely, setting financial goals, and prioritizing spending based on needs vs wants. Five questions that can be evaluated using a data-driven approach are:

  1. How much am I spending on dining out each month?

  2. What percentage of my income goes towards rent/mortgage?

  3. What is my average monthly spending on transportation?

  4. Which category of expenses accounts for the largest portion of my spending?

  5. How much money am I saving each month, and am I on track to reach my savings goals?

Final Visualization Dashboard

Figure:Visualization Dashboard

References

https://iopscience.iop.org/article/10.1088/1742-6596/2425/1/012062/meta

https://scholar.google.com/citations?user=tOLVeaQAAAAJ&hl=en&oi=sra

https://www.researchsquare.com/article/rs-1669983/latest.pdf

Jones, D. A. (2023). A Review and Critical Analysis of Qualitative Methodologies and Data-Collection Techniques Used for Code-Switching Research. American Journal of Qualitative Research, 7(2), 53-72.

Sajid Hasan, A., Jalayer, M., Heitmann, E., & Weiss, J. (2022). Distracted driving crashes: a review on data collection, analysis, and crash prevention methods. Transportation research record, 2676(8), 423-434.