Enough has been spoken and written about the need for financial planning. The most important part that strikes me personally is that a plan forces you to use limited resources for efficiently.
With a plan, you can gather insights using numbers and then make investment decisions which are not purely driven by greed and fear.
Here’s more: 50 decisions you can make with a financial plan
This section in Insider Plus will help you take a step by step DIY approach to build, understand and execute your very own financial plan. That too without jargon or complex calculations.
Comprehensive Financial Planning Workbook (June2020)
If you are looking for answers to the following questions, then you have come to the right place.
- How adequately am I protected via insurance?
- Am I saving enough?
- Will I successfully reach my goals?
- When can I retire? Or become Financially Free?
- How long will my Retirement Portfolio last?
- What is the wealth I will leave behind?
- How do my spouse and I sync on our financial well being?
You will need MS Excel to work with this file.
The first sheet that you should look at is “Start Here”. Then complete the inputs.
Remember, your inputs are going to be crucial in this exercise and more detailed they are, likely better insights you will get from this.
After completing the inputs, you have to do two things.
First, go to the Networth Sheet, click on any cell in one of the tables. Then, in the top Excel Menu, you will see “Pivot Table Analyse“. Click on that menu and then select “Refresh All“.
Two, now select the Formulas item in the Menu, and then click on “Calculate Now” icon. This will update the Monte Carlo Simulation based on your data inputs.
Remember, you will have to do these 2 steps every time, you update any inputs.
If you have any questions regarding the workbook, please feel free to send.
I am very confident that this is the only dashboard you will ever need to know where you stand with your finances, goals and the key gaps that you need to bridge as you move towards your financial freedom.
All the best!