Financial Planing - Goal Realization (Excel Model)

All of us need money for our future requirements; some people also call it financial goals. The main question that lies in our mind is that “How much shall I invest”?

I have tried to simplify the whole investment procedure for you so you can do it on your own

Three steps to investing –

1.       Why do you want to invest?  (Goal – Child Education, Buying car etc,  Time – when)

2.       What is your risk appetite? (How much risk you can take)

3.       Enter your data in below excel template and get the amount that you should be investing on monthly/ Yearly basis

Download the template from below link 
https://drive.google.com/file/d/0B6PCLqvOx_9JZWc3MF9NRWFIanc/edit?usp=sharing

Note – Please enter inputs in highlighted fields, Result will come in GREEN color cells

Definitions - of terms used in Excel template

Goal                 It is the present value of the cause you investing for. If you are investing for say a hatchback car, then the goal may be 5,00,000

Time                How much time you have to invest by when you want to realize your goal

Assumed inflation Rate

I have used 7% as inflation rate; you can change the number if required. However 7% is reasonable assumption used across in financial industry

ROR (Rate of Return)

 It will depend on the investment you are making.

·         FI – for FD or any other fixed income you can directly enter the rate of return

·         EQ – depending upon the mutual funds you have chose, you can enter the ROR number. You can look at funds past performance to decide how much return you should be expecting