Visible Balance for Dummies

Visible Balance is a term that may seem confusing at first but let's break it down and understand it together. Imagine you have a piggy bank or a jar where you collect all your pocket money, coins, and bills. That piggy bank holds your savings, and you can see how much money you have in it, right? Just like that, we can think of our "Visible Balance" as the amount of money we can see or know about in our bank account.

Now, you might be wondering, what's the big deal about seeing our balance? Well, it's important because it helps us keep track of how much money we have available to spend or to save. Think of it like having a map when you go on an adventure. Without a map, it's easy to get lost or not know which direction to take. But with a map, you can see where you are, where you want to go, and how to get there. Similarly, our "Visible Balance" acts like a map for our finances.

When we talk about "Visible Balance," there are two different definitions we need to be aware of. The first definition refers to the balance we can see when we check our bank account online or through a mobile app. This is like looking into your piggy bank and seeing exactly how much money is inside. It tells us the precise amount of money we have available at a specific moment.

The second definition of "Visible Balance" involves an analogy with a glass of water. Imagine you have a glass filled with water, and this glass represents your total income or the money you have. Now, imagine that there are rocks and pebbles placed on top of the water. These rocks and pebbles represent your expenses or the money you need to pay for things like food, clothes, and bills. The water level that remains visible between the rocks and pebbles is your "Visible Balance." It's the money left over, after deducting your expenses, that you can actually use for other things or save for something special.

So in summary, "Visible Balance" is all about understanding the amount of money you have available to spend or save, both in your bank account and after deducting your expenses. It's like having a map that guides you through your financial journey and helps you make informed decisions about how to manage your money wisely.