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Tab #2. Tracker & Dashboard
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✍️ Here you will track your progress monthly. First, choose your goal between Lean, Normal, or Fat (see definitions below for more information)
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πŸ—“οΈ Date Colunm: double click the cell for the mini calendar to choose the transaction date.
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πŸ’³ Total Monthly Expenses: insert your total expenses for the current month. Remember to adjust your spending to meet your spending plan amount.
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πŸ’° Investment Balance: insert the balance amount of all of your investments accounts
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πŸͺ™ SWR: safe withdrawal rate for that particular month to be compared to your spending. Autocalculated according to the % chosen in the calculator tab.
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πŸ’Έ Passive Income: insert the income received from passive income, if any. Otherwise, insert 0.
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πŸ’΅ Total Income: is the sum of Passive Income plus the SWR. If the total income is higher than your spending, your reach FI (asuming everything else is constant).
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DEFINITIONS:
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- SWR (Safe Withdrawal Rate) is a method for determining when to take a withdrawal. Based on the 4% rule, which stipulates that you may withdraw 4% of your investment portfolio annually without running out of money. Financial independence is achieved when your SWR exceeds your costs. Note: You can use 2% or 3% if you want to be more conservative.
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- Financial Independence refers to the amount of investments required to pay for your expenses without having to work. Based on the 4% Rule, you may safely remove 4% from your portfolio each year without emptying it if you have a 7% average rate of return and a 3% inflation rate.
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- LeanFI - Refers to living Financially Free but with a smaller cost of living. This is done by cutting costs significantly to cover the basic need expenses (or just a bit more).
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- Normal FI - Thsi is the traditional concept where you can cover your normal current expenses.
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- Fat FI - Here you will plan living a more "luxurious" lifestyle. This will be significantly higher than the Normal FI.
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