Description:FIELD OF THE INVENTION

[0001] The present invention relates to a system for managing personal finances that facilitates real-time monitoring in an automated manner, in view of offering financial recommendations and enhancing budgeting, savings, and debt management.

BACKGROUND OF THE INVENTION

[0002] Financial management plays a crucial role in maintaining personal economic stability and achieving long-term financial goals. Individuals often struggle with tracking expenses, repaying loans on time, and making informed savings decisions due to lack of centralized and automated solutions.

[0003] Traditionally, people rely on manual budgeting methods, spreadsheets, or fragmented mobile applications that only address limited aspects of financial planning, such as expense tracking or investment summaries. These tools often require repetitive manual data entry and do not offer predictive analytics or personalized recommendations based on user behavior. Also, failure to monitor cash flow and expenses in real-time lead to overspending, missed payments, and financial distress. Existing tools rarely synchronize data from multiple sources like SMS alerts, bank statements, and user preferences in a unified manner that supports real-time decision-making.

[0004] CN102708468A discloses a personal financial management system which comprises personal bills, financial situation display module and a financial analysis module. The personal bills comprise a current assets bill, an investment income bill and a liabilities bill and is inputted into the financial situation display module through a scanning device; the financial analysis module comprises an inputting device, a database and a financial statement generation device; one end of the inputting device is connected with the financial situation display module, and the other end is connected with the database and the financial statement generation device in sequence. Due to the mode, the personal financial management system can reflect the personal daily financial situation intuitively so that a clear instruction for the future reasonable financial planning can be made and the personal financial management consciousness can be improved.

[0005] US7050997B1 discloses a personal financial management system, method and program that models past current and projected financial transaction data. Each object represents a single financial entity such as accounts, loans, assets or expenses, or a financial activity such as account transfers, deposits or withdrawals. A graphical user interface enables the user to create objects and place the objects on a graphical time line simulating financial activity from all selected objects over a selected time span. The graphical user interface also allows manipulation of the graphical objects and enables future projection of planned financial transactions. The planned financial activity is tightly bound to past and current spending and budgeting, enabling the user to match current activities to planned activities, and to identify and correct discrepancies and shortfalls in projected activities. A to-do list provides the user with reminders of planned actions to be conducted. Customized objects may also be created by the user to satisfy special financial requirements.

[0006] Conventionally, many systems lack the ability to analyze comprehensive financial information, predict future financial risks, or assist in proactive management of personal income, debt, and savings. These limitations hinder individuals from making optimal financial decisions.

[0007] In order to overcome the aforementioned drawbacks, there exists a need in the art to develop a system that requires to be capable of aggregating data from various channels, analyzing financial trends, predicting future expenses, and generating real-time recommendations and alerts to enhance user financial health and enable responsible money management.

OBJECTS OF THE INVENTION

[0008] The principal object of the present invention is to overcome the disadvantages of the prior art.

[0009] An object of the present invention is to develop a syatem that is capable of aggregating financial data from various sources in view of creating a comprehensive financial profile.

[0010] Another object of the present invention is to develop a syatem that is capable of analyzing categorized expenses and monitoring loans, for improving financial awareness.

[0011] Another object of the present invention is to develop a system that is capable of generating personalized financial recommendations to assist users in maintaining financial balance.

[0012] Another object of the present invention is to develop a system that is capable of predicting future expenses to help users prepare and adjust budgets accordingly.

[0013] Another object of the present invention is to develop a system that is capable of updating the financial profile automatically, thus eliminating the need for manual updates ensuring the data remains current.

[0014] Yet another object of the present invention is to develop a system that enables users to customize the suggested financial plans through manual input on the user interface, providing flexibility and user control over financial decisions.

[0015] The foregoing and other objects, features, and advantages of the present invention will become readily apparent upon further review of the following detailed description of the preferred embodiment as illustrated in the accompanying drawings.

SUMMARY OF THE INVENTION

[0016] The present invention relates to a system for managing personal finances that automatically manages and monitors cash flow, loan repayment, and savings by generating personalized recommendations based on user behavior and financial conditions, thus enabling proactive and data-driven financial planning.

[0017] According to an embodiment of the present invention, a system for managing personal finances comprises of a data collection unit, to store salary data from bank statements and SMS details, a computing unit having a database, to hold data about loans, medical information, and savings, a data aggregation module to collect and combines data to create a complete financial profile, an analysis module associated with the system, to improve financial management and to use past spending patterns to predict future expenses.

[0018] According to another embodiment of the present invention, the system further comprises of a recommendation generation module associated with the system, to suggest salary distribution plans, saving strategies and schedules automatic payments for loans and bills, also prioritizes loan payments based on their interest rates and due dates, a user-interface installed in the computing unit, showing real-time expense and loan information, sending payment reminders, and notifying users about cash flow and balance status and allowing the user to change the suggested salary distribution plan manually.

[0019] While the invention has been described and shown with particular reference to the preferred embodiment, it will be apparent that variations might be possible that would fall within the scope of the present invention.

BRIEF DESCRIPTION OF THE DRAWINGS

[0020] These and other features, aspects, and advantages of the present invention will become better understood with regard to the following description, appended claims, and accompanying drawings where:
Figure 1 illustrates a schematic diagram depicting workflow a system for managing personal finances.

DETAILED DESCRIPTION OF THE INVENTION

[0021] The following description includes the preferred best mode of one embodiment of the present invention. It will be clear from this description of the invention that the invention is not limited to these illustrated embodiments but that the invention also includes a variety of modifications and embodiments thereto. Therefore, the present description should be seen as illustrative and not limiting. While the invention is susceptible to various modifications and alternative constructions, it should be understood, that there is no intention to limit the invention to the specific form disclosed, but, on the contrary, the invention is to cover all modifications, alternative constructions, and equivalents falling within the spirit and scope of the invention as defined in the claims.

[0022] In any embodiment described herein, the open-ended terms "comprising," "comprises,” and the like (which are synonymous with "including," "having” and "characterized by") signi be replaced by the respective partially closed phrases "consisting essentially of," consists essentially of," and the like or the respective closed phrases "consisting of," "consists of, the like.

[0023] As used herein, the singular forms “a,” “an,” and “the” designate both the singular and the plural, unless expressly stated to designate the singular only.

[0024] The present invention relates to a system for managing personal finances that tracks expenses and alerts users about low balances or due payments, while supporting real-time updates and manual adjustments to financial plans through an intuitive user interface for promoting responsible financial decision-making.

[0025] Referring to Figure 1, a schematic diagram depicting workflow a system for managing personal finances is illustrated. The system disclosed herein comprises a data collection unit serving as the foundational component responsible for gathering essential financial information. The data collection unit connects with bank statement records and SMS details received on a computing unit that houses a database. The database securely stores diverse financial data, including salary entries, loan records, medical expenses, and savings information.

[0026] Upon receiving new data from bank statements or SMS messages, the data collection unit extracts relevant financial details such as credited salaries, debit transactions, loan repayments, or savings deposits. The collected data forms a continuously updated repository of the user’s financial activities, enabling processing modules to perform in-depth analysis and generate tailored recommendations.

[0027] The system further comprises an analysis module operating on the comprehensive financial profile created by the data aggregation module. The primary purpose of the analysis module is to categorize expenses into various predefined or custom categories such as groceries, utilities, entertainment, and medical bills. The analysis module also tracks loans taken and given, monitoring repayment schedules and outstanding balances.

[0028] Using this categorized data, the analysis module identifies patterns and trends in spending and income flow. By analyzing these patterns, the analysis module determines areas where financial management is to be optimized. For example, highlighting excessive spending in specific categories or identify opportunities to consolidate loans. This analysis forms the basis for generating actionable insights aimed at improving the user’s overall financial health and facilitating better budgeting decisions.

[0029] The analysis module uses past spending patterns to predict future expenses. This feature of the analysis module is designed to enhance the financial planning capability of the system by anticipating upcoming expenses based on the user’s historical financial behavior, supporting budgeting, goal setting, and proactive decision-making by forecasting spending trends. The analysis module further reviews stored transaction data, such as categorized expenses obtained from bank statements, SMS messages, and manual user input scanning for recurring payments, such as rent, subscriptions, utilities, grocery spending, or debt repayments. Also the analysis module examines both the frequency and amount of these transactions across multiple time intervals, weekly, monthly, and quarterly.

[0030] Using this data, the analysis module generates predictive insights into expected future outflows. The projected expenses are then reflected on the user interface, allowing the user to view likely future cash outflows. By anticipating future financial demands, the system helps the user avoid overspending, maintain liquidity, and make informed financial decisions in advance.

[0031] Based on the analysis performed by the analysis module, a recommendation generation module is associated with the to utilize the outcomes from the analysis module and to offer targeted suggestions. These suggestions include optimized salary distribution across savings, investments, and expenses. The recommendation generation module also proposes saving strategies that align with current market trends and automates loan or bill payments as per user preferences or contractual obligations. The recommendation generation module aims to empower users with data-driven, personalized financial planning tools.

[0032] The recommendation generation module prioritizes loan payments based on their interest rates and due dates. This feature of the recommendation generation module is designed to optimize loan repayment by reducing financial burden and avoiding penalties. By prioritizing which loans should be paid first, the system helps the user manage liabilities more effectively, save on interest over time, and maintain a healthy credit profile. The recommendation generation module receives processed financial data from the analysis module, including details about active loans. These inputs are gathered through the data aggregation module, which compiles the user's financial information from SMS alerts, bank statements, and manual inputs.

[0033] Once the loan-related data is available, the recommendation generation module applies a rule-based prioritization logic that evaluates two primary factors, interest rates and due dates. For interest rates, loans with higher interest rates are considered costlier over time. The recommendation generation module identifies and suggests repayment of such loans earlier to minimize cumulative interest payments. For due dates, loans nearing their repayment deadlines are flagged as time-sensitive. The recommendation generation module ensures that these loans are scheduled for payment first to avoid late fees or penalties.

[0034] By evaluating both factors together, the module creates a repayment schedule that reflects, High-priority loans, Medium-priority loans and Low-priority loans. A user-interface installed in the computing unit is designed to serve as the primary access point through which the user interacts with the system. The user-interface is installed on a computing unit, such as a smartphone, tablet, or computer, and is structured to display up-to-date financial insights in an organized format.

[0035] The purpose of the user-interface is to provide the user with direct visibility into their ongoing financial activity and status. The user-interface enables informed decision-making by continuously displaying essential data such as categorized expenses, outstanding loan amounts, and available balance. The user-interface operates by retrieving processed data from the underlying modules. Real-time expense and loan information is fetched from the analysis module, which categorizes and calculates various financial elements.

[0036] As the user engages in transactions or when new data arrives (such as bank statement updates or SMS transaction alerts), the interface updates to reflect the current state of finances. The user interface also presents payment reminders based on due dates and financial schedules determined by the recommendation generation module. These reminders are displayed in advance to ensure that users have time to arrange the necessary funds.

[0037] Additionally, notifications related to cash flow and balance status are generated when the system detects that the user’s available funds are approaching or falling below a predefined threshold. This functionality allows the user to avoid overdrafts or insufficient balances by taking timely action.

[0038] The interface supports user interactivity by allowing manual adjustments of suggestions provided by the system, including salary distribution plans and savings goals. The user explores different scenarios, confirm or reject recommendations, and adjust settings to align with personal preferences.

[0039] Further, the user interface allows the user to change the suggested salary distribution plan manually. This feature is intended to provide flexibility and control to the user over how their income is allocated. While the system generate automated salary distribution recommendations based on financial analysis, this component ensures that the user tailor those suggestions to align with personal goals, preferences, or unforeseen financial needs.

[0040] The system regularly updates the financial profile in real time when new bank statement data or SMS details are received. This feature is intended to provide flexibility and control to the user over how their income is allocated. While the system generate automated salary distribution recommendations based on financial analysis, this component ensures that the user tailor those suggestions to align with personal goals, preferences, or unforeseen financial needs.

[0041] The user interface, installed on the computing unit, serves as the primary access point for interacting with the system’s financial management features. When the recommendation generation module formulates a salary distribution plan allocating portions of the user's income to savings, loans, recurring expenses, and discretionary spending, this plan is displayed to the user through the interface in a clear, segmented format.

[0042] The present invention works best in the following manner where the data collection unit accesses bank statements and SMS records stored on the computing system to extract salary deposits and transaction alerts. This data is fed into the central database that also holds user-inputted information about ongoing loans, emergency medical funds, and savings targets. Once collected, the data aggregation module compiles the information into the single structured profile, including matching deposits and expenses, filtering duplicate entries, and aligning SMS data with recorded bank activity. The analysis module begins processing this aggregated data to classify expenses into predefined categories. The analysis module tracks loan activities by comparing outflows labelled as repayments and inflows recognized as personal loans given to others. Spending habits from previous months are compared to determine potential overspending or under saving, and patterns are flagged for user attention.

[0043] In continuation, based on these analyses, the recommendation generation module proposes the distribution plan for the user’s salary, suggesting how much to allocate to monthly bills, debt servicing, discretionary spending, and savings. If market conditions indicate a rise in interest rates or inflation, the module adjusts savings strategies accordingly. The recommendation generation module also recommends scheduling automatic payments aligned with upcoming due dates. The user interface, constantly updated with these insights, notifies the user of pending payments, low balance conditions, and irregular cash flow. When new financial data is detected, the data collection unit captures it instantly. This triggers cascade update across the aggregation, analysis, and recommendation modules, ensuring that financial guidance remains relevant and up to date.

[0044] Although the field of the invention has been described herein with limited reference to specific embodiments, this description is not meant to be construed in a limiting sense. Various modifications of the disclosed embodiments, as well as alternate embodiments of the invention, will become apparent to persons skilled in the art upon reference to the description of the invention. , C , Claims:1) A system for managing personal finances, comprising:

i) a data collection unit associated with the system, that stores salary data from bank statements and SMS details from a computing unit having a database, where the database holds data about loans, medical information, and savings;
ii) a data aggregation module associated with the system, that collects and combines data from bank statements, SMS details, and user input to create a complete financial profile;
iii) an analysis module associated with the system, that categorizes expenses, tracks loans taken and given, and finds ways to improve financial management;
iv) a recommendation generation module associated with the system, that based on analysis performed by the analysis module, suggests salary distribution plans, saving strategies based on market conditions, and schedules automatic payments for loans and bills; and
v) a user-interface installed in the computing unit, that shows real-time expense and loan information, sends payment reminders, and notifies users about cash flow and balance status.

2) The system as claimed in claim 1, wherein the analysis module uses past spending patterns to predict future expenses.

3) The system as claimed in claim 1, wherein the system sends alerts through the user interface when the user’s cash flow falls below a set limit.

4) The system as claimed in claim 1, wherein the recommendation generation module prioritizes loan payments based on their interest rates and due dates.

5) The system as claimed in claim 1, wherein the user interface allows the user to change the suggested salary distribution plan manually.

6) The system as claimed in claim 1, wherein the system regularly updates the financial profile in real time when new bank statement data or SMS details are received.