Lazy Paddler Investor Show
Today, something a little different. I'm going over the basics of how to build a financial model of a simple budget using Microsoft Excel. Hopefully this is useful to people. I have been using budgets and models personally and professionally for about 30 years now--it is literally the gift that keeps on giving! The knowledge you will gain about yourself using a simple model like this will be valuable for the rest of your life.
If you haven't built a budget for yourself before, take an hour and do it! I will walk you through the techniques.
Here's that student loan calculator I found (you can actually use it for many different types of loans, but it works for student loans just fine).
www.calculator...
01:20 - What is a model?
02:43 - Building a simple income model & basic algebra in cells for an hourly job
09:45 - Expense modeling
10:42 - Labeling a cell (I misspeak and say I'm labeling a "column" but I meant "cell")
14:14 - Subway example: expenses count 7 days per week, but income is usually fewer - how to estimate income versus expenses
16:23 - Formatting as currency, hiding cents without losing data
19:59 - Using =SUM()
22:11 - Why NOT to use =C6+C7+C8... when you want to build a total line in a model
22:56 - Copying calculations so they refer to the next line down
26:43 - Always balance your budget
29:43 - Why we build models instead of just listing numbers
31:00 - Know your number (your break-even number)
34:52 - Additional considerations: Taxes, Student loans, etc. (Sorry the tax rate is buried behind my head on the video, but you get the idea.) The number I used for the post-tax income that you cannot see was 0.7.
Негізгі бет Building a Budget Model - Basics
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