💰 budgeting is essential to manage personal finances – however, I do mine slightly differently from others.
I make use of a SAVINGS FORECAST template instead of a BUDGETING template to know how long I'll take to save up for something.
I created this sheet 5 years ago and till now i'm still using it. and I have since shared multiple copies with my friends 😅
why I use it:
✨️ I use this so I do not have to key in my expenses every day. a monthly reconciliation does the job to keep me on track with my savings
✨️ it keeps me motivated to save / earn more.
✨️ I look at the bigger picture, and I treat myself to keep me motivated as long as it's in my budget. thus, not stressing over small expenses.
how I use it:
🔍 I look at when I'll reach my savings goals, e.g., hitting 100k so I can look at property investment .
🔍 once my pay is in, I reconcile my balances to ensure my savings are on track. if I fall short, I look at what I spent to see if I need to adjust my expenses on this sheet. if I saved more, I look at whether i'm calculating my expenses correctly.
🔍 I adjust the salary amount sometimes to see what it would be if I just earn $500 – $1000 more. Will it make a difference in my savings target? Will it make me live more comfortably?
🔍 by adjusting my earnings and expenses, it allows me to see what changes can be done to help me reach my savings targets.
limitations:
❌️ it is meant for people with stable income a month
❌️ if you earn more than 6k, the CPF OA calculation will not be accurate from sep onwards – reasons why linked in the excel sheet.
❌️ I only added 10 years forecast, when you make a copy, you can extend rightwards as much as you want.
❌️ investment % returns not included.
I can't add the link to the google sheet, so I'll leave it in the comments!
