The PERSONAL FINANCE BUNDLE
A spreadsheet-based system to guide you through creating your entire financial plan
Created by a CPA financial planner, this comprehensive, tax-focused spreadsheet is a great tool for the DIY physician investor to map out their path toward financial independence. Below are descriptions of all the workbooks included in this bundle.
Your financial plan starts by utilizing the cash flow information you already have available to efficiently calculate many other necessary pieces of the plan.
But, don’t worry. No restrictive budgets are required here, just planning and tracking cash flow so you can make more effective financial decisions.
If you already have something you use to track your cash flow (such as YNAB, Quicken or Mint), you can simply export and import information from there. Alternately, you can directly manage cash flow tracking within this workbook (Tiller Money is a great tool for this which allows you to automate pulling your financial transactions and balances directly into Excel or Google Sheets).
This module also includes net worth tracking and projection sheets so you can monitor your progress toward your financial goals.
High-income professionals should regularly monitor their expected tax liability so that they:
- Identity tax planning opportunities to reduce their tax liability
- Aren’t underpaid at the end of the year and end up owing the IRS penalties and interest, and
- Can see in real time how financial decisions affect their tax liability
The workbook includes detailed sheets to calculate your tax liability (including 2 separate tax scenarios), and also an overview sheet to visually see your current tax brackets and some other key numbers.
Regular tax planning is doubly important for those that own their own medical practice and pay in quarterly estimates to Federal and State tax authorities. By estimating your taxes throughout the year, you can easily determine how much to pay in each quarter.
From tackling consumer debt and student loan debt to longer-term mortgage payoff, this workbook has you covered. With an average student debt load of over $200,000 for physicians (and a monthly student loan payment higher than most people’s mortgages) a solid plan to pay off those student loans is essential.
The key here is to help you see the impact of making higher payments on your debt, but also to balance that payoff with your other financial and life goals as well.
When it comes to managing your debt, ignorance simply isn’t bliss. Instead, bliss is having a solid plan in place to pay that debt off.
The importance of protecting your assets and future ability to earn income are too often overlooked when creating your financial plan. These templates help ensure that you understand your coverage for property insurance policies.
And, they’ll walk you through determining how much life and disability insurance you need to cover your future expenses. Because unfortunately, a disability can be even more costly than a death, since you not only have the loss of income but also additional ongoing medical and care expenses.
Remember: insurance is about covering risk that you can’t afford to manage yourself. That’s why it’s imperative to analyze your own personal situation and not rely solely on rules of thumb.
SAVING & INVESTING
Focusing on increasing savings has more of an impact early on for a physician starting out in their career than does trying to achieve bigger investing returns. That’s where managing cash flow comes in. But, of course, it’s also important to invest that money for the long run to achieve financial independence.
There are a few essential pieces of your financial plan that this module focuses on:
- Investment Policy Statement
- Asset allocation (what to include in your portfolio)
- Asset location (where to put those assets in your portfolio)
In addition, it allows you to see your account totals by tax type so that you can optimize your plan for retirement. This is imperative to monitor to optimize long-term tax liability.
Looking at each account separately allows you to see both historical contributions and performance, and also look ahead to the future to project future balances to meet your financial goals.
RETIREMENT & COLLEGE PLANNING
Planning for retirement and dependents’ college expenses should always be done in conjunction since you’ve likely heard before: you can’t pay for your retirement with loans, but your kids can take out loans to fund college if needed.
Retirement should always be first priority, and determining your “enough” number allows you to be confident in enjoying your life now while knowing you are saving a sufficient amount to allow you to retain your lifestyle after work has become optional.
In recent years, we’ve been shocked by high-profile celebrities who have died without a will or trust.
Drafting these documents should be left to a legal professional, but the major components are still based on some inputs that only you can give.
This module will help guide you through some of the essential questions such as:
- Who do you want to be the guardian of your children if you were to pass away?
- Who do you want to inherit specific assets if you were to die?
- Are there any stipulations you want to make on when and how heirs can receive these assets?
Thinking through these key decisions will make it easy (okay, easier) to move forward with getting that complete estate plan in place.
Whether you DIY your own financial plan or hire a professional, these are all key areas you’ll need to include in your own financial plan.
With over 80 sheets to walk you through every aspect of your financial plan, this spreadsheet bundle is the tool you need to take action. It’s a great addition to the Fire Your Financial Advisor course!
If you want to learn more, please check out these links:
- Get more details, video preview, screenshots, and look up FAQ’s here.
- Purchase the bundle here (includes both Excel and Google Sheets versions).
- Get some additional free resources for setting financial goals and setting up a budget here.