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Forecasting Spreadsheet
Price: $49.99
For Excel 2010, '13, '16, '19, Microsoft 365 (including 365 for MAC) |
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adding expenses video transcript:
Okay. In this video, we're going to go over the last few elements that you need to add to get your forecasting spreadsheet, to give you the complete picture. So you added all of your investments at all your assets with alone and in all your loans, credit cards, make sure you add in all your sources of income.
And you know, if you're just money coming out of your paycheck, you're, you're accounting for those sort savings. And as you're doing these things, it's filling in the information up here. Here's your gross pay, less the money that came out for insurance expense, less the money that came out for savings. So that's money out.
So up here, you've got to put whether it's money in. So earnings is money in, uh, insurance expenses, money out savings as money out and loan payments as money out now. When you look at this and you say, well, savings, I'm going to use in the future. If you come down here and you look at this, invest in this 401k, and you have these withdrawals here, withdraw from savings.
So when you come up here to the top, that's actually money in. So I'm a slide out to the right here. So in this period of time where you're putting money to savings, it's money out. And then when you withdraw from savings as money in. It's very important that you keep straight, if it's money coming out or money coming in and that you recognize it.
So again, earnings money coming in the different elements of a paycheck. We went through that in the adding income video. So a lot of this is from that. So here's money coming out for insurance money coming out for savings. Now we're going to take a look at, and here's the loan payments that we put in. So you were making loan payments on your mortgage.
And here's the return on investments. So that's money coming in. Now, these return on investments. If we take a look down through here, you don't necessarily want that to be showing up. So what I would do is remove this because that's not money coming in and I'll just show you here. What I mean?
So the return on investments probably shouldn't be up here, uh, uh, uh, give you the flexibility to do that. Um, depending on what type of investment you have, you might actually have money coming in each year, but just the return. If you're not tapping into that is not money coming in. And it really is contained in here, or you have withdraw from savings.
So here you're taking money. And that's the money coming in from those investments. And this money that's available to come in here is from that return on investments. So really would say that should be blank. Another thing with this asset down here, and you have what percent is available for sale from available savings.
So I'll show you those two up here at top. So available savings is helping you give coverage over your expenses. And then this down here is tracking your assets versus your liabilities, and could tell telling you what your net worth is. You can see that net worth and you can see it grow. And then as you use up the savings you have, you'll see a decline.
So an element that's missing here is our expenses. And if you use Excel, your finances spread. You should have a real good feel for what your expenses are. You've been tracking your expenses and you would even have the ability. And one thing I like to do for myself is you put in the actual budget in here.
So you can put in the actual categories, food, clothing, and you can just go through, you know, medical expenses. Entertainment vacations. You know, you can put all those different elements in here, put your budget in here and copy it over to the right. And now, you know, if your budget works for you or not, because you have your income, you have your budget.
And is it going to allow you to achieve your goals for this demonstration? I'm going to, I'm just going to have, uh, a few grouped categories. So again, Fixed expenses and variable expenses. And I'm going to use, uh, you have the option of doing percent of gross or percent of take home. I'm going to do percent of take-home for this section, this general section.
And I'm going to say forgiving, or we're going to 5%. Okay. And for fixed expenses, let's say that's 12% of our take-home for variable. We're going to say it's 43% and I would copy this to the right. So I copy this over. Keep in mind if you don't copy that over to the right. If you changed your gross income or your take home at different points in time, it's just carrying this.
Over see how this number is not changing. It's not taking this percent times. Each of those every year works independently, but it will carry over the previous year balance, um, as a default. So I'm going to copy these percentages over to get some accurate numbers
now, right off the right off the bat, you know, your retirement years, you're not going to be spending as much money as you did in your working years. However, since I have it as a percent and there's no take-home pay, it's not calculating any of these expenses. So probably what you want to do is type in an amount at this point of what you think, uh, your expenses would be.
So I'd put down below that we're going to S uh, withdraw 45,000. So if we are going to put some numbers in here, So you can put a dollar amount the way this works is if it's greater than a hundred percent, it knows it's a dollar amount and it carries it down through. If it's a percentage, then it tries to multiply it.
So that's, what's going on there. Copier that to the right. That's where I, so be giving away money and our fixed expenses. Let's put this at 5,000.
Change that to her comma.
And we're going to put our variable in here.
It's going to put this at 15 as well. Five is really low. Okay. I think this percentage is way too low here. I'm going to fix this.
Uh, I don't want to mess up. There you go. Okay. So now I put in my giving fixed and variable expenses. And like I said, you can have as many in here as you want. You can add, you can delete them, whatever you want to do. And if I hit delete, it's going to delete both of those lines. And
same thing. If you add, it's going to add two lines so that you can, uh, fill that fill in whatever you would need to fill in as much detail as you would like. Now, here is the fun part, which is large expenses where you really get into trying to plan for the future. And, you know, let's say you have three kids that you're trying to, you want to help pay for their college.
You can put their names in here.
Let's say, you know, over the next several years, you're going to be replacing carbon. And you're going to be replacing cart too. You know, you want to remodel the kitchen. You want to remodel the house. You want to take a, do a trip to Disney and say, you want to upgrade the basement. So it was just some random examples of future large expenses that you might have.
And as you sit down and you start saying, okay, well, when will this child, how old is this child? And when will they be going to college? And you say, it's going to be in 2025. So we're going to put a, let's just say, we want to contribute 20,000 a year. And we don't know if we can afford that or not, but we're going to put that in here and see what happens.
So first put that in 20,000 and now the next kid. It's two years behind. And the third one, this is three years behind that. So right off the bat, there's a lot of money, uh, for children to go to school. And it was probably not coming close to paying their entire balance, but at least you're helping let's.
Let's just put it that way. I just want to fix this a tough thing here.
Okay. So replacing car one, depending on how old your car is and how long you think it will last. And let's say you're going to spread out your payments in a car loan. You could either set up a car loan down below and put the beginning payment in 2022, or you could put it up here and put it as a large payment and maybe you see large.
And maybe you think you'll spend 20,000 on a used car and you put that in here and then the next vehicle that you're going to replace, you can put that here. So right now, you know, you're, you're basically gauging how much can we spend on a car? Uh, how much can we spend on college? And you know what, these two cars we're going far enough out in the future, they're going to need replaced again.
You're going to come out here even farther. And you're going to say, you know, around this time, um, we're going to have to replace them again. So you go ahead and put that out there. You talk about wanting to fix up the house, which can be fun, but can be an incredible amount of money. So let's put this in here and depending on what your budget is.
Maybe you can do it for 7,500. I know people spend 10 times that amount. So this is why you can sit down and put in what you think you want to do. And then see if you can afford it based on the money that you're earning versus what you're spending. So that's how you add expenses. You have your general expenses and your large expenses.
You want to make sure that you're not double counting them. Uh, if there's something that is contained within your general expenses that you put down here, then you might want to reduce some of your general expenses because you don't want to double count it. Also, there could be some things down in your income when you're deducting things out of your paycheck that make it being double counted.
Some maybe it's your house savings. Which is for all your medical expenses and an up here, you might have medical expenses as well. So we'll go in more depth of how to make sure you're not double counting things. And so in the next video we're going to go through, how do you evaluate all the elements that we've added to the spreadsheet and determine can we actually afford these future plans, these future expenses that we have here?
See you in the next video. Thanks.
Click here to watch more videos : https://www.xlyourfinances.com/videos.html
And you know, if you're just money coming out of your paycheck, you're, you're accounting for those sort savings. And as you're doing these things, it's filling in the information up here. Here's your gross pay, less the money that came out for insurance expense, less the money that came out for savings. So that's money out.
So up here, you've got to put whether it's money in. So earnings is money in, uh, insurance expenses, money out savings as money out and loan payments as money out now. When you look at this and you say, well, savings, I'm going to use in the future. If you come down here and you look at this, invest in this 401k, and you have these withdrawals here, withdraw from savings.
So when you come up here to the top, that's actually money in. So I'm a slide out to the right here. So in this period of time where you're putting money to savings, it's money out. And then when you withdraw from savings as money in. It's very important that you keep straight, if it's money coming out or money coming in and that you recognize it.
So again, earnings money coming in the different elements of a paycheck. We went through that in the adding income video. So a lot of this is from that. So here's money coming out for insurance money coming out for savings. Now we're going to take a look at, and here's the loan payments that we put in. So you were making loan payments on your mortgage.
And here's the return on investments. So that's money coming in. Now, these return on investments. If we take a look down through here, you don't necessarily want that to be showing up. So what I would do is remove this because that's not money coming in and I'll just show you here. What I mean?
So the return on investments probably shouldn't be up here, uh, uh, uh, give you the flexibility to do that. Um, depending on what type of investment you have, you might actually have money coming in each year, but just the return. If you're not tapping into that is not money coming in. And it really is contained in here, or you have withdraw from savings.
So here you're taking money. And that's the money coming in from those investments. And this money that's available to come in here is from that return on investments. So really would say that should be blank. Another thing with this asset down here, and you have what percent is available for sale from available savings.
So I'll show you those two up here at top. So available savings is helping you give coverage over your expenses. And then this down here is tracking your assets versus your liabilities, and could tell telling you what your net worth is. You can see that net worth and you can see it grow. And then as you use up the savings you have, you'll see a decline.
So an element that's missing here is our expenses. And if you use Excel, your finances spread. You should have a real good feel for what your expenses are. You've been tracking your expenses and you would even have the ability. And one thing I like to do for myself is you put in the actual budget in here.
So you can put in the actual categories, food, clothing, and you can just go through, you know, medical expenses. Entertainment vacations. You know, you can put all those different elements in here, put your budget in here and copy it over to the right. And now, you know, if your budget works for you or not, because you have your income, you have your budget.
And is it going to allow you to achieve your goals for this demonstration? I'm going to, I'm just going to have, uh, a few grouped categories. So again, Fixed expenses and variable expenses. And I'm going to use, uh, you have the option of doing percent of gross or percent of take home. I'm going to do percent of take-home for this section, this general section.
And I'm going to say forgiving, or we're going to 5%. Okay. And for fixed expenses, let's say that's 12% of our take-home for variable. We're going to say it's 43% and I would copy this to the right. So I copy this over. Keep in mind if you don't copy that over to the right. If you changed your gross income or your take home at different points in time, it's just carrying this.
Over see how this number is not changing. It's not taking this percent times. Each of those every year works independently, but it will carry over the previous year balance, um, as a default. So I'm going to copy these percentages over to get some accurate numbers
now, right off the right off the bat, you know, your retirement years, you're not going to be spending as much money as you did in your working years. However, since I have it as a percent and there's no take-home pay, it's not calculating any of these expenses. So probably what you want to do is type in an amount at this point of what you think, uh, your expenses would be.
So I'd put down below that we're going to S uh, withdraw 45,000. So if we are going to put some numbers in here, So you can put a dollar amount the way this works is if it's greater than a hundred percent, it knows it's a dollar amount and it carries it down through. If it's a percentage, then it tries to multiply it.
So that's, what's going on there. Copier that to the right. That's where I, so be giving away money and our fixed expenses. Let's put this at 5,000.
Change that to her comma.
And we're going to put our variable in here.
It's going to put this at 15 as well. Five is really low. Okay. I think this percentage is way too low here. I'm going to fix this.
Uh, I don't want to mess up. There you go. Okay. So now I put in my giving fixed and variable expenses. And like I said, you can have as many in here as you want. You can add, you can delete them, whatever you want to do. And if I hit delete, it's going to delete both of those lines. And
same thing. If you add, it's going to add two lines so that you can, uh, fill that fill in whatever you would need to fill in as much detail as you would like. Now, here is the fun part, which is large expenses where you really get into trying to plan for the future. And, you know, let's say you have three kids that you're trying to, you want to help pay for their college.
You can put their names in here.
Let's say, you know, over the next several years, you're going to be replacing carbon. And you're going to be replacing cart too. You know, you want to remodel the kitchen. You want to remodel the house. You want to take a, do a trip to Disney and say, you want to upgrade the basement. So it was just some random examples of future large expenses that you might have.
And as you sit down and you start saying, okay, well, when will this child, how old is this child? And when will they be going to college? And you say, it's going to be in 2025. So we're going to put a, let's just say, we want to contribute 20,000 a year. And we don't know if we can afford that or not, but we're going to put that in here and see what happens.
So first put that in 20,000 and now the next kid. It's two years behind. And the third one, this is three years behind that. So right off the bat, there's a lot of money, uh, for children to go to school. And it was probably not coming close to paying their entire balance, but at least you're helping let's.
Let's just put it that way. I just want to fix this a tough thing here.
Okay. So replacing car one, depending on how old your car is and how long you think it will last. And let's say you're going to spread out your payments in a car loan. You could either set up a car loan down below and put the beginning payment in 2022, or you could put it up here and put it as a large payment and maybe you see large.
And maybe you think you'll spend 20,000 on a used car and you put that in here and then the next vehicle that you're going to replace, you can put that here. So right now, you know, you're, you're basically gauging how much can we spend on a car? Uh, how much can we spend on college? And you know what, these two cars we're going far enough out in the future, they're going to need replaced again.
You're going to come out here even farther. And you're going to say, you know, around this time, um, we're going to have to replace them again. So you go ahead and put that out there. You talk about wanting to fix up the house, which can be fun, but can be an incredible amount of money. So let's put this in here and depending on what your budget is.
Maybe you can do it for 7,500. I know people spend 10 times that amount. So this is why you can sit down and put in what you think you want to do. And then see if you can afford it based on the money that you're earning versus what you're spending. So that's how you add expenses. You have your general expenses and your large expenses.
You want to make sure that you're not double counting them. Uh, if there's something that is contained within your general expenses that you put down here, then you might want to reduce some of your general expenses because you don't want to double count it. Also, there could be some things down in your income when you're deducting things out of your paycheck that make it being double counted.
Some maybe it's your house savings. Which is for all your medical expenses and an up here, you might have medical expenses as well. So we'll go in more depth of how to make sure you're not double counting things. And so in the next video we're going to go through, how do you evaluate all the elements that we've added to the spreadsheet and determine can we actually afford these future plans, these future expenses that we have here?
See you in the next video. Thanks.
Click here to watch more videos : https://www.xlyourfinances.com/videos.html
Notice:
All of XLYourFinances' spreadsheets are protected by copyright laws. Breaking into the spreadsheet’s macros or breaching its password protection not only makes guarantees of the spreadsheet’s usability and support for the spreadsheet null, but is also considered a copyright infringement, as the methodologies and techniques utilized are proprietary and owned by XLYourFinances, LLC. Please refer to the terms agreement for more details on the terms of use.
All of XLYourFinances' spreadsheets are protected by copyright laws. Breaking into the spreadsheet’s macros or breaching its password protection not only makes guarantees of the spreadsheet’s usability and support for the spreadsheet null, but is also considered a copyright infringement, as the methodologies and techniques utilized are proprietary and owned by XLYourFinances, LLC. Please refer to the terms agreement for more details on the terms of use.
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All XLYourFinances.com spreadsheets are copyright protected, © 2010-2022.
All XLYourFinances.com spreadsheets are copyright protected, © 2010-2022.