Monthly expense calculator how to#

Cells in other colors contain formulas. Do not type in those areas. And we can make use of the compounding effects of higher interest rates.Most importantly, all yellow fields expect you to input a value. That’s because, with inflation, the value of our money decreases over time. Hopefully, by doing the above, you’re left with more cash in the bank.īut aside from emergency funds and upcoming financial commitments where you need liquid cash, you should put them into alternatives that can give potentially higher returns, based on your risk tolerance. This mental resistance combined with the desire to achieve future financial goals will enable you to say “no”.įrom the calculator, you can also see what necessities and wants are you spending on, and improve on them. You’ll be more conscious of what you’re spending on if you have a limited amount of money you can spend each month.įor example, if you find yourself in a situation where you’re questioning to buy an item which is not budgeted for, chances are that you shouldn’t.īecause you know that by doing so, you’ll overspend at the end of the month. When you make it a priority to save first before spending, it’s like locking away money in the vault, and the money you’re left with can only be spent on things that you’re allowed to. If you don’t have it, paying for these bills will come from your hard-earned savings and investments. It’ll be an essential item if your hospital bills are large. If smaller incidents happen and you need to be hospitalised, medical insurance can cover the bills. Having enough life insurance enables you to replace future income if the worse happens. Once you lose it due to death, total & permanent disability or critical illness, future income is lost, and your current savings are unlikely to last. Having adequate insurance allows you to protect future income and preserve the wealth you’ve accumulated.Īs your income enables you to spend, save and invest, it’s the most important resource you have. Protection here means making use of insurance.Īlthough it may be deemed an expense, it’s can be an asset when the time comes. take more responsibilities and show that we’re competent.Some examples of how we invest in our careers:

We need to be excellent at what we do so that we’ll be rewarded with promotions, higher salaries and bonuses. One of the best ways to have more money is investing your time and effort into your career or businesses that you run.

Monthly expense calculator how to#

Learn how to significantly improve your personal finances with the 7-step wedding cake strategy today. But really, there are only a few things that you should focus on.

This isn't surprising because personal finance can seem complicated and daunting. How can you improve on your overall finances?Īccording to a survey conducted by MoneySense, about 3 out of 10 Singapore residents aged 30 to 59 had not started planning for their future financial needs.

If you took the step to fill in your numbers, it means that you’re serious in managing your money for a better future.Īlthough the calculator gives you some insights on your saving and spending habits, it doesn’t give you everything. This way, by tracking and control how we spend our money, we’re able to trim the fat (reduce unnecessary expenses).Ĭombined with forced savings, doing this regularly will ensure that we have the savings to hit our financial goals such as having sufficient funds for retirement or providing for our kid’s education.Īlso, sticking to a budgeting rule, such as the 50/30/20 rule, helps you to budget money effectively. This could be done by looking at your past month’s bank account statements and going through each item. (I do find it quite a hassle too, especially if it’s daily.)īut the point is to be aware of what you’re spending your money on. The Point of Tracking Your Expensesįor some of you, it may be difficult to track all your expenses. You may also do this with just 2 accounts. You can also set up a standing instruction for this. To make it easier, set up a standing instruction to transfer automatically.Īnd the rest can go into C. So when income goes into A, transfer the amount you want to save/invest into B. You can have 3 savings accounts – A, B and C.ī: account purely for savings and waiting to be investedĬ: account purely for daily, monthly and annual expenses The trick is to make it structured and easy. Here are 5 reasons why financial planning is so important. In this day and age in Singapore, doing so will absolutely improve the quality of life for you and your loved ones. When was the last time you've done proper financial planning or went through a review of your finances?