One of the more amazing things I’ve encountered while studying finance is the Rule of 72. This rule effectively tells you how long it would take to double your money, depending on what interest rate you are earning on it. So if you were earning 4% a year, it would take roughly (72/4) = 18 years to turn $1,000 into $2,000.
After nearly a year and a half after the candidates first declared their intention to run for the Presidency, we have now elected a new President. Trump’s Presidency was a surprise to many, and with Republicans in control of both the House and Senate along with the Presidency, major changes could be possible.
This post was inspired by reading a Quora response where the child of a top 1% family says that one of the advantages of his upbringing is that his parents taught him about how business works. “Business” is a somewhat broad term that some schools say takes two years and $120k in tuition to “master”. However, as we typically do in this blog, we can educate ourselves on some of the central concepts of business on our own through spreadsheets!
“The more you give, the more you get, that’s being alive” – The Money Song, Avenue Q
Charitable giving serves a valuable purpose in our society. It allows organizations in health, education, social services and others to provide benefits to people who otherwise couldn’t afford them. It allows people who have built up wealth to give back and make a difference. The federal government even subsidizes charitable giving by allowing donations to be deducted from income reported for taxes (effectively kicking in up to 39.6% of each donation). It’s a great system that is meant to fund those people and organizations in need. At least that is how it should be. Continue reading “How to analyze a nonprofit Form 990 with a spreadsheet”
Will you save more with standard PPO or a high-deductible PPO Saver plan with a Health Savings Account?
It is currently Open Enrollment season at many workplaces, which is when employees choose their medical insurance and other benefits plans for the upcoming year. It’s also the time of year when people grumble “why is the US healthcare system so complicated” and just elect whatever plan they had in the prior year. Building a spreadsheet can help someone compare the costs and benefits of each of the plans under a variety of different assumptions about tax rate and healthcare expenditure. Continue reading “Build a Spreadsheet to help you choose a healthcare plan”
At first glance, it sounds like an obvious question – surely it is better when stocks go up, right? From watching the ads on CNBC, it would seem that higher stock prices directly translate into more steak dinners and golf vacations while lower stock prices mean bringing your own peanut butter sandwiches to work (jelly is for bull markets). Continue reading “Do you want the stock market to go up or down?”
Use a spreadsheet to help see the effects of three key personal finance tips: Earn more, spend less, invest wisely
A quick search for “personal finance” on Amazon.com will reveal a vast amount (100+ pages of results) of literature on this important topic. We imagine that a fresh 22 year old college graduate could easily get overwhelmed by the chorus of advice and opinions. For them, we offer this post on how to use a spreadsheet to forecast your financial future, and see how your decisions will affect your finances in future years. Continue reading “Personal Finance Made Easy (with Spreadsheet Modeling!)”
Discover how to create a currency exchange rate calculator – a practical & versatile spreadsheet app. From a list of 61 currencies, this tool can generate a total of over 3,600 exchange rate combinations! Discover how to build it with basic functions: GoogleFinance, IF, data validation, and Vlookup.