I think charts, graphs, and visualizations are particularly useful in personal finance. It’s great to know your net worth, monthly spending, monthly income, and your savings rate, but visualizing all these numbers can really help you wrap your head around your financial situation. Seeing your finances turned into graphs and charts can help you understand your money in a deeper way than just staring at raw numbers.
This is why I want to help you visualize your financial situation.
Here’s what I have in mind: You send me an overview of your financial situation including your assets, liabilities, monthly income, monthly spending, and any savings goals you may have. Then I’ll create graphs and charts to visualize your finances and what your financial future will look like based on your current income and spending.
I’d like to start a new weekly series where I visualize one person/one couple’s financial situation every Saturday and share it on the blog.
I’ll give a complete example of what this would look like using my own financial situation:
Part 1: Net Worth
Part 2: Monthly Cash Flow
|Data Analyst Job||$4,500|
|Stock/REIT/Index Fund Dividends||$100|
|Total Monthly Income||$5,100|
|Total Monthly Spending||$1,200|
|Total Monthly Savings||$3,900|
Part 1: Current Net Worth
Part 2: Monthly Cash Flow
Part 3: Visualizing the Future
Now that I’ve seen what my overall net worth and monthly cash flow looks like, here’s what my financial future will look like if I continue with this monthly savings rate:
Current Monthly Savings: $3,900
Current Yearly Savings: $46,800
Projected Net Worth by saving $46,800 each year at various interest rates:
Now let’s try a thought experiment: We’ll assume my savings grow at a 5% annual interest rate (completely reasonable) but let’s see what the impact of saving even more per month would look like on my financial future:
If you would like me to visualize your finances, fill out the contact form below with subject “My Financial Situation” and a short message with your bio like “I’m interested in having my finances visualized. I’m 31 years old, married, no kids, work as a software engineer and I hope to retire by 43, etc.” and I’ll shoot you an email back with a template you can use to fill out your numbers. You can be as anonymous or open as you’d like. Thanks in advance for participating 🙂
Zach is the author behind Four Pillar Freedom, a blog that teaches you how to build wealth and gain freedom in life.
Zach's favorite free financial tool he's been using since 2015 to manage his net worth is Personal Capital. Each month he uses their free Investment Checkup tool and Retirement Planner to track his investments and ensure that he's on the fast track to financial freedom.
His favorite investment platform is M1 Finance, a site that allows him to build a custom portfolio of stocks for free, has no trading or maintenance fees, and even allows him to set up automated target-allocated investments.
His favorite way to save money each month on his recurring bills is by using Trim, a free financial app that negotiates lower cable, internet, and phone bills with any provider on your behalf.
His favorite micro-investing app is Acorns, a free financial app that takes just 5 minutes to set up and allows you to invest your spare change in a diversified portfolio.
His favorite place to find new personal finance articles to read is Collecting Wisdom, a site that collects the best personal finance articles floating around the web on a daily basis.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.