The main purpose of my FIRE Template is to achieve the goal of financial freedom. This template tells me where I am now, how for am I away from financial freedom and am I moving towards or away from it.
How to use it?
Click here to access it and make a copy. I suggest you use Google Spreadsheets as well, so that you can use the graphs I created.
1. Decide how often do you want to update it. I personally do it monthly but quarterly, half-yearly or yearly will work as well. Adapt the row “date” to the schedule you want. Go as back in the past as you have the data available.
2. Add your assets. There’s a post here to tell you what your assets are.
3. Add your debt. There’s a post here to tell you what your debt is.
5. Add your expenses. There’s a post here to tell you what your expenses are.
That’s it. The template will now calculate for you:
- Your total assets (Sum of assets)
- Your total debt (Sum of debt)
- Your net worth (Sum of assets – sum of debt)
- Your total income (Sum of incomes)
- Your total expenses (income expenses + living expenses)
- Your savings (total income – total expenses)
- Your savings rate (savings / total income)
- Your FIRE number (living expenses * 25)
- Years to Financial Independence ((FIRE number – net worth)/savings)