hi guys and welcome to a super quick template on a personal budget now we've all been there taking
in your monthly salary and really calculating what your personal budget is for the month now we want
to take you to the next level and extrapolate that take it into consideration some investment
income some additional income or expenses you may have and really extrapolate your accumulated
savings each month and visually display them in a nice chart so i'm going to walk you through the
couple of steps that you need to take in order to arrive at such a nice overview
first of all we have three sheets that we need to look at we're starting off with our salary
calculation now we want to enter our annual cross and the number of salary payments per year this
yields the gross salary each month and we also see the annual total of it
now coming from gross to net is super specific to the different countries now i'm giving you
a sample so let's say i'm calculating with 15 of taxes a bit of other health insurance unemployment
insurance all these kinds of things and you see that these are calculated automatically right
as a percentage of your gross salary each month now in your particular case these may change
so feel free to change these pieces right here adjust the percentages adjust the categories
whatever you want to do sometimes it's also it may also be a fixed payment then you should
enter it right here in the gray cell now at the end you will arrive at your monthly net salary
this number we're just going to take it and take it over to the personal budget right here
so we have our net salary each month i'm just going to quickly zoom in
now we started with our monthly fixed costs how much do we spend each month on rent car insurance
gasoline online services our cell phone wi-fi and so on and so forth right you have plenty of space
to be super creative and enter your own categories and then also enter the amounts of course
and then we can see what our subtotal in terms of fixed cost is each month and we can also see the
percentage of this so what's so you see that by far rent is the biggest impact we have in terms
of a fixed cost each month but then of course we also have variable costs so we need to take them
into consideration as well what are variable costs well variable costs basically means you need to
decide how much you want to spend on it and super free right so sometimes you're spending
300 bucks on groceries sometimes it's just 200. sometimes you're eating out a bit more sometimes a
bit less shopping is also very very variable and they're all different kinds of categories that
you can put in to again calculate your subtotal for variable costs in the end the end is just a
mathematical calculation you're taking your net salary each month you deduct your monthly fixed
costs and your variable costs and you're left with a net disposable income so this money can go
directly into your savings or you can go directly into an investment whatever you want to do
so this number we're going to keep that in mind and go over to the monthly savings evolution
what do we have here now we essentially have our monthly net salary coming from
the salary calculation if you have any kind of government bonds or if you're holding any stocks
and you're subject to dividend payouts you can enter passive income that you may have each month
so let's say that in september you get a thousand bucks in dividends you can enter this one in
let's say you're selling your car in november for nine grand and you can enter this one in at
the same time you know you've sold your car and you want to upgrade a bit more so you're paying
15 grand on your new car so this is how you calculate your total monthly income
your expenses and you arrive at the cumulative savings per month the cumulative savings per month
mean this is the total savings of each month added up in addition to that you may have some
you know you may have another bank account somewhere with a cash balance on it
you may have a stock portfolio whose value changes you may also be holding some other assets and each
and every month what you can do is go ahead and enter the total value of your stock portfolio
or the total value of your bank accounts and this will then give you your total assets in
other words this is going to be your net worth assuming that you have no liabilities to pay back
so in the end this is going to give you the monthly savings evolution
that just means that each and every month so the gray bars right here that's going to depict your
cash flow coming in each month and the green line is going to show you the total net
assets that you have at the end of the month so looking from june to june a three-year horizon
looks quite nice huh from 13 grand to 114 now this is of course provided that you know all
of the assumptions right here really materialize but generally speaking i think you get the idea
the idea really is for you to plan your monthly cash-ins to plan your savings maybe play around
a bit with your variable costs you may want to move into a smaller or a bigger flat to really
see the impact on your net disposable income and then to also calculate what the net impact
at the end of three years is going to be so i hope that with this template you have
a great way of really planning your savings evolutions and i hope that you find this useful