0:00 So you want to put your kid through college and you need to get $100,000 actually need like $109 upwards to $200,000 these days.
0:10 But if you can save every single month, you can get there. I made this template that I actually use myself.
0:19 I have an account that I keep some cash in. I have, uh, uhm, minimum amount of cash I want to have in that account.
0:28 And then anything above that, I'm going to invest in the future. So I'm actually thinking like 15 to 20 years ahead of time.
0:35 So I'm never going to cash that out. But I'm going to have this minimum cash here. So I made the template for myself to figure out, okay.
0:43 I mean, yes, I have this, uh, very, uh, cute, um, reminder every time I o- open this up, which I open it up about every month or sometimes every two weeks or so.
0:53 Umm, but it's a reminder that consistency beats perfection. I don't need all of the money right now, but if I consistently put in something every single month, it's going to grow.
1:04 And how do I know that? It's because I have this over here on the right, this future value. Now, I want to show you this really cool formula.
1:12 . It's FV, or future value, and I use it here to give myself a range of, if I'm putting in $500 a month, then this year, this particular year, 2045, how much am I going to have?
1:28 And that's really awesome, right? If I put in 20 years, it's like 20 times 12 times 500. That's pretty cool that I can just, ehm, just the basic amount is going to be 120k, but the actual value, if I'm actually investing in that, will be 40k, or even double that, right?
1:53 This is a, um, I have used the future value, I've said, okay, at 3% growth, what is it going to be?
2:00 And it's, 7% growth every year, what is it going to be? And I give, I give myself that range. But let's talk about the actual moving parts, I'll come back to this future value.
2:09 I have income and outcome, or expenses or investments. So, if I put in, um, a check for 500, I, I have dates here, I can put in a date.
2:28 Uh, but if I see right away, it cuts down my available for investment. Because it's negative. And it increases my current account.
2:40 So each time I do this, if I keep putting in 500 bucks, now it tells me, oh, I can invest in 15, 100, okay.
2:49 Well, I'll put in an investment for 1500. And this account is going to stay up to date. This is going to be all of the sum here.
3:02 Single bank account minus all of the things I do. Because there might be other things. Maybe I actually start paying tuition.
3:08 Maybe I am doing this 20 years in advance, but maybe it's only 10 years. And I actually, It's going to have to start paying into the tuition at some point.
3:15 So if I have to pay that, maybe 800 or 2000, and I put that as tuition, see right away, cuts out of my car and account.
3:27 Isn't that cool? So maybe I added 1500 this month. And 1500 this month. 1500 this month there. I have a thousand to invest.
3:40 So I can do a thousand here in investment. Or if I'm just going to give my kid some cash, maybe I cash out 500 bucks there.
3:50 It's just going to take out of that current account. And it's going to keep telling me how much can I add into investment based on how much I have here.
3:59 So I just put in a month like- . . 12.500. I have a big goal of 100,000. Tows me how much I have to go.
4:06 So this is, oall of- this is this big goal,minus. What's in my current account. . . Minus what's invested. And investments are are a sum-if of all of these types, so all of these.
4:25 These expenses that are just investments, I'd say how much is invested. And so I have,how much,what is that big goal and what am I getting into it?
4:37 If I want to track investments, I can put in a share here, and I can go to this investment tab, put the date bought, how many shares, put a cost basis, and it's going to update the current value.
4:49 Valley. So I can get a,a pretty quick account of how much value do I have, right? It's going to be roughly around that, if I want to keep track of this.
5:01 And I can keep adding many more, uh, lines, and it'll just,just a couple of formulas, Google Finance, this,and market value is just going to be whatever the current cost is.
5:12 is. Times how many shares I have. Alright, let's talk about this future value, because I think it's a really, really fun formula, but I had to do a little bit of fancy work here.
5:25 Basically, let's just take one of these future values. Actually, I will put it right here for us. Yes. Equals f of e, and now we need a rate.
5:41 So, this is going to be 5%, and yes, it is going to be just that, 5%. The number of periods.
5:51 So, what I have done here is I take g6, which is the year of my goal. I subtract the year- here.
6:01 Enter now, and that amount of difference is how many periods it will be. So, equal fv, rate 5%.
6:13 Number of periods is 20, 45. I can also reference this particular cell, minus, and I'm going to wrap up today with years.
6:25 So, wrap around today, year. So, that'll always update. That'll always update, update, update. Payment amount is going to be 500.
6:37 Present value, let's say it's zero. So, this is really funky. It has to be the whole year. . Year and negative.
6:53 So, I have to put in, if I do negative 500, that's for the whole year, but if I do negative 500 times 12, meaning 500 dollars every single month, that is going to be how much do I pay in to that future value.
7:07 And if I start at zero, then I got 198,000 dollars. Right, that's a huge difference. That's, what's 500 times 20 times 12?
7:24 That's a huge difference. Five percent? Wow, I could just make 78,000 just by investments. If I, if I put that into real investing, right, if I really invest that, if I just put it into cash, and I don't get five percent, maybe I get one percent.
7:41 There you go, 132. So I still make $12,000 over the next 20 years, right away. So that future value is really handy, but that trick is, you gotta put the payments on that negative, make it negative.
7:54 You can have a starting amount if you want. Present value. Just fine. And actually, I think I have that starting value is C8.
8:07 Yeah, whatever I have invested here. So I'm actually not putting my value on what's in my account, but actually in my investment here.
8:15 So that's cool, as the investment grows, right? Month over month or year over year. The future value, the amount of payments here will decrease.
8:25 please. Because that year is coming closer, that difference is coming down. Hopefully, that's pretty cool for you. If you haven't understand a word of this, it's totally fine.
8:35 You can get this template exactly as you see it down below and start playing with it. And use it, put in your uh, payments here, put in your expenses here.
8:49 And if you invest, you'll see that future value go up and up and up and up as the days and the years and the months and the weeks go by.
8:58 Hopefully you enjoyed that. Thanks so much for watching.