Hi Leo-Finance community,
based on the method from my last post (@jkr88/how-to-categorize-the-flow-of-your-capital-and-track-your-personal-finance), where I explained how to track the flow of your money with a simple pivot-chart, I have maintained a very basic income and cost overview within my personal-finance calculations.
I looks like this:
In Column A you can see my Level 1 ... (see my last post @jkr88/how-to-categorize-the-flow-of-your-capital-and-track-your-personal-finance)
In Column B you can see my Level 2 ...
In Column C and D I calculate yearly and monthly amounts - based on input from columns E to H.
In Columns J to U I calculate monthly sums for further planning purposes which I will elaborate on in a upcoming post.
So now I basically know my fixed costs and my income on a very detailed basis.
I can now sum things up in line 44 and calculate the amount of variable costs, investments, on a yearly base and see what I can additionally afford and invest.
For 2021 I'm planning with the following sums (Euros):
So out of my income I plan to spend 48% on fixed costs, 34% on variable costs, and 19% on investments.
So I have 19% (almost one fifth) of my income as a buffer and if everything goes according to plan this amount will be invested. Of that I plan on spending 8.000 Euros for additional payback on my mortgage and the remaining 4.000 Euro I plan on investing in ETFs and Bitcoin :)
What method do you use for planning your personal financial year?
More details on how to further use this calculation method for planning and forecasting purposes will follow in my next posts.
Would love to read your feedback!
Stay safe!
