Investment Compounding Schedule



I devised this schedule to predict what my future investments would be worth.  The typical Future Value calculation involves taking today’s account balance, applying an interest rate and the number of periods for compounding. 

That’s great if you are working with only one balance at one given time. 

Because I make regular deposits into my investment accounts, I wanted to increase the balances at different intervals.  I created quarterly segments where any additional investment can be entered.  The formula will take the new end-of-quarter balance and apply the compounding. This repeats for all quarters. 

The yellow fields are the input fields.  The investment account balances can be entered at the top left.  You will see the entire schedule update as soon as an investment balance is entered.  Amounts can be entered in all the “Cash Invested” fields. 

At the end of the schedule, I calculate a cash flow amount based on the final balance.  I have used a conservative 3.5% return.  Below, I have a short list of estimated living expenses. Both cash flow and living expenses can be calculated on a monthly or annual basis.

If you’re good at Excel, you change alter the rates and add rows for additional years.  Let me know what you think of the schedule. I hope you find it useful.

Inv Compounding



Welcome to my blog

Welcome to my blog.

I think about money 24/7.  Doesn’t everyone?  Maybe not.  That’s why this blog will serve as my outlet to share my thoughts with the world.  It’s a healthy way to get these thoughts out of my head.

Money issues are universal.  Even if people don’t readily talk about money, it’s still an issue, whether or not they want to admit it.  I find money management interesting and tied to every other aspect of life.

My interest in finances started early in life.  I learned to not want to be struggling like my parents and they always seemed to be struggling.  When I was very young, I remember living comfortably.  After a few years, my parents built a brand-new home and soon, they were in over their heads.  By then, my mother was never indulgent and the struggling was palpable. It became worse after my parents divorced.  My mother had no job-related skills and took a low-paying secretarial job.  My dad ran his own business, but it was pretty slim living by then.

People learn what they’re taught and I guess they never had the best education in managing money.  My mother was told not to go to college, that I know as a fact.  The other messages that she silently passed down were probably learned from some previous experience.  One very strong impression I remember was a doozie: don’t expect too much of life.  Sad, isn’t it?

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