Tools to Build Wealth: Budgets, Income, Assets, Net Worth

By Vadim.MikhailenkoBudgeting, Microsoft Excel
Smart Family Finance Tutorials

Thank you for enrolling into my Udemy Course: How to Build Wealth Long Term. You probably realize that people don’t get rich by accident. Wealth accumulation is typically a planned process, which involves understanding of the basic concepts, building and executing a plan as well as measuring you progress to stay on track.

In this course we will be looking at basic concepts and tools of building wealth using Microsoft Excel:  this will help you customize the plan and will help you setup goals and track your progress toward the goal of becoming financially independent:

Below are the topics we are going to cover in this course:
  • Tools and strategies how you can make it work
  • Budgets. Why they don’t work. And what you can do to
  • Spending Vs Investment. Why investments are critical for your financial future
  • What are Assets and Liabilities.
  • How to calculate Net Worth
  • Income Statement and Balance Sheet
  • How to set financial goals and use all these tools together and accumulate wealth

 

Download MS Excel File referenced in this training course

 

Some additional helpful tutorials:

Smart Family Finance Video Tutorials:

Lesson 1: Smart Budgeting in Excel – Save More and Balance Income and Expenses

Monthly Budget in Excel – Download Microsoft Excel Source File Used in Above Video

Lesson 2. Why budgets don’t work – and how you can change that for you

Why Budgets Don’t work – Download Microsoft Excel Source File Referenced in Above Video

 

Lesson 3. How to improve family budget – Step back to see the big picture

  1. Budget should fit your long term goals (Important of setting goals first)
  2. Budget helps you build a set of rules to make decisions
  3. Document everything. Budget helps you see real financial picture
  4. Budgeting is collaboration with other on decision making

Family Budgets – See the Big Picture – Download the File Used in Above Video

 

 

Lesson 4. How to improve family Budget: Spending (Consumption) vs. Investment planning

  1. Family Finance and Budget. Different ways of planning
  • Spending vs. Consumption planing
  • Planning based on financial goals
  • Planning based on priorities

Definition of Investment: spending money on activities or assets to create future revenue stream

2. Example of Investments (Ongoing or Projects)

  • Get education to be eligible for higher paid jobs (Cash investment or Student Loan)
  • Learn a new skills to get promoted (No cash investment but time commitment)
  • Contribute to 401K (Before Tax Monetary Commitment)

 

Spending vs Investment – Download File used in Above Video

 

Lesson 5. Build Wealth without making a lot of Money

Questions we look at in the video:

  • Spending should not exceed Income. Track Spending and create budgets.
  • Establish Emergency Fund with Liquid Assets
  • Goal 1: Increase assets and decrease liabilities over time
    • It is OK to borrow for investment.
    • Borrowing doesn’t pay off for consumption
    • Focus on Growth of NetWorth
  • Goal 2. Convert regular Income into Portfolio Income
    • Invest 15% of income for retirement. Use Index Funds to diversify
  • Set Goals. Track Progress. Re-evaluate annually

Make sure to review below mobile friendly video on the topic:

Download MS Excel File referenced in the video

 

 

Next Steps:

  1. Download MS Excel Budget Planning File file
  2. Checkout my easy to follow tutorial: Annual Budget in 7 Steps
  3. Review my other Budgeting and Personal Finance Video Tutorials
  4. Subscribe to my email list to receive more tutorials like this one:

If you would like to learn more about Microsoft Excel Budgeting you can enroll into below online training courses:

[do_widget id=nav_menu-12]