Budget Actual
Gross Monthly Pay $8,320.00 $8,320
Total Est. Deductions $2,506.29 $2,506.29
Net Pay $5,813.71 $5,813.71
Rent $1,400 $1,400
Car Payment $340 $340
Car Insurance $103 $103
PSE&G $150 $170.00
Cable/Internet $150 $169.48
Water $20.00 $13.20
Phone $97.73 $97.73
Gym $20.64 $20.64
Groceries $350 $496
Sirius Radio $24.36 $24.36
Total Expense $2,656 $2,834
Total Savings $3,157.98 $2,979.30
Yearly Savings $37,895.76 $35,751.60
Using the budget above, in an excel file use as many time lines as you need forecast all your projected savings (investments) to get each investments future value. You will have to determine your PV, I/y, N, PMT then calc FV If you don’t have any idea on the I/y you could use 5 or 6% to be conservative. N depends on your current age and when you think you will retire. Savings 401k or (403B) whichever you use IRA’s…. Home Ect……. Once you add up all the future values from step 2 above, and do a time line to determine how much you will be able to spend each year assuming you are going to spend all your money. I.e. your future value will be 0. To calculate N, you have to make a lot of assumptions. For example, if you are planning on retiring at age 65 and think (hope) you will life until you are 90 (25 years) your N will be 25.