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https://rossm.me/investing-fundamentals-how-much-do-i-invest/
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Step 1. Find your Expenses so you can see how much you need to live on (at current expenses)
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ExpensesLast 52 WeeksNormalisationFinal YearlyMonthlyEmergency Funds (6m)
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Food & Drink1,975 1,975 165 988
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Home529 529 44 264
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Leisure565 565 47 282
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Other23 23 2 11
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Personal41 41 3 20
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Subscriptions7 7 1 3
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Technology164 164 14 82
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Transportation498 498 42 249
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Travel3,821 3,821 318 1,911
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Utilities1,399 1,399 117 699
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Strata3,000 3,000 250 1,500
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Races1,400 1,400 117 700
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Loan Repayments15,414 15,414 1,284 7,707
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RM Personal19,557 19,557 1,630 9,778
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Grand Total48,400 0 48,400 4,000 24,200
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Step 2. Compare you expenses to your income
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My Personal Income StatementFriday, June 4, 2021
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AnnualMonthly
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Income (Base Gross)100,000 8,300
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Bonus (Estimate)3,000 300
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Total Income103,000 8,600
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Tax(26,002)(2,200)
https://moneysmart.gov.au/income-tax/income-tax-calculator
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Net Income76,998 6,400
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Expenses(48,400)(4,000)
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Net Income28,598 2,400
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Step 3. How much do you currently have that you COULD potentially invest?
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AssetsAmount ($)
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Cash in Bank (All accounts)45,000
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Current Share Portfolio5,000
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Less: Emergency Fund(24,200)
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Maximum Investment Amount25,800
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Step 4. Beef up your Emergency Fund based on your current situation
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Example A: Young person with good financial position looking have a wedding soon
Total Available Cash (A)
50,000
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Add to Emergency FundsImportance to youWeightedFinal
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ScenarioLow (0-10%)Med. (10-25%)High (>25%)%$Amount
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Age (30)0%0 0
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Dependants (None for 10 years)-5%(2,500)(2,500)
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Annual Cash Savings ($55K)0%0 0
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Upcoming Expenses ($)*5,000 10%5,000 5,000
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Additional Emergency Funds75%75%100%5%2,500 2,500
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*Travel planned on a few occasions
Starter Emergency Funds
24,200
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Total Emergency Fund (B)
26,700
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Amount to Invest (A - B)
23,300
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Amount to Invest %47%
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Step 5. Final Maximum Investment Amount
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BeforeAfter
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AssetsAmount ($)Amount ($)
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Cash in Bank (All accounts)45,000 26,700
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Current Share Portfolio5,000 23,300
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Less: Emergency Fund(24,200)(26,700)
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Maximum Investment Amount25,800 23,300
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