theKimsta_RedCar
Google
 

Tuesday, 18 March 2008

Saving Your Way to Wealth Calculator

The first step to saving is finding out where your money goes - then you can set about making realistic cuts.

Most people know how much money is coming into their household, but not many know where it goes. They only know it often runs out and then they use the credit card.
Alas, this is the path to poverty rather than wealth.

The key to controlling your money rather than it controlling you is to spend less than you earn.

How to fill in the planner:

Step 1. Expenses
Work out what you spend on each item on a monthly basis. If you are not sure about some, such as entertainment and clothes, make an estimate but keep a note of every expenditure so you can test whether your estimate is accurate.

Enter numerical and positive values only.

Home Expenses$/month
Mortgage repayments
Rent
Investment Property
Council Rates
Water Rates
Electricity
Gas
Telephone bills
Maintenance
Furniture
Appliances
Rentals
Other
Family Expenses $/month
School Fees
Child Care
Pets
Sports
Memberships
Transport
Papers/Magazines
Clothing
Personal grooming
Entertainment
Holidays
Gifts
Other
Food Expenses$/month
Groceries
Alcohol/Cigarettes
Takeaway
Restaurants
Other
Health Expenses $/month
Medical Bills
Dental Bills
Pharmacy
Other
Insurance Expenses $/month
House
Home contents
Health
Income Protection
Death Cover
Car
Other
General Expenses $/month
Personal loans
Credit cards
Store cards
Professional services
Donations/Charity
Other



Step 2. Income
Remember this should be your after-tax income plus income from any other sources, such as interest.

Step 3. Click on "Calculate Savings!" button to see your monthly savings.
If your savings is negative, it is important to act quickly to make cuts in your spending.

Ideally, you should have a surplus of at least 10% of your income, which you can then use for other investment purposes to increase your income.


Income $/month
Your after-tax income
Partner's after-tax income
Rental from investment property
Interest from saving accounts
Dividend received
Other
Total Income
Less your total expenses
YOUR MONTHLY SAVINGS
Percentage of income (%)


Let me know how you go or have any comments to share.

See also: Yahoo!7 Finance Budget Planner

0 comments: