money-management, saving

My Car Is 20 Years Old

Ol’ reliable.  Isn’t she a beaut?  This baby is turning 20.  While most people would rather be seen in the back of a hearse than a car this old, I embrace its charm.  The visor sometimes falls in my lap, the radio volume lowers or becomes sharply louder when I hit a bump, and there’s that strange clicking when I put the fan setting on the front windshield.

She’s been sprayed a few times to cover up the bruises.  The front bumper is secure, but if you look closely, it’s slightly askew.  That’s left over from when an old man T-boned the passenger’s front quarter panel.  She’s been punched in the gut by shopping carts and side-swiped by careless drivers but she rides on like a champion.

You know that soft whistle-y sound when the aura enters the room in the Twilight Zone?  I hear that coming from under the hood.  Those sounds are helping me secure my future as I’m aggressively working towards an early retirement.

Of all the things we buy, our car is the most personal and sensitive.  Next to a house, it’s also the most expensive. And people love to judge, right?  We are all judged on what we drive.  Some will even determine if you are a good match for your car.  Like, “What’s that old geezer doing driving a Corvette? There should be a hot guy in the driver’s seat.”  Gotta love the American way.

Continue reading “My Car Is 20 Years Old”

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investing

Investment Compounding Schedule

 

THIS POST MAY CONTAIN AFFILIATE LINKS.  SEE MY FULL DISCLOSURE FOR DETAILS.

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

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