SF's road to mortgage freedom!

edinburgher

Your spreadsheet would look like:

A1: 4%
A2: 7917
A3: -x (x is your daily payment, experiment with this!)
A4: -y (where y is your current net worth, you can put 0 if you want)
A5: 1

Formula should be: =fv(A1/365,A2,A3,A4,A5)

Experiment with it

slowlyfading

Okay, after playing around with the formula - thanks ed - about £32.50 a day is more like our number. Still a bit :eek: but basically equates to having to save £1,000 a month from now until retirement.

Still a bit :eek: :eek: :eek: but not quite as scary....

edinburgher

Two things are making it scarier than it needs to be.

1) You're not including home equity
2) You should also be applying the FV formula for what happens to your spending during the first 17 years before you retire. Create another formula like the first one, but covering 17 years, with 4% return, a payment of 24,000 (positive this time) and a present value of -408,000. What happens?

slowlyfading

edinburgher wrote: »

Two things are making it scarier than it needs to be.

1) You're not including home equity
2) You should also be applying the FV formula for what happens to your spending during the first 17 years before you retire. Create another formula like the first one, but covering 17 years, with 4% return, a payment of 24,000 (positive this time) and a present value of -408,000. What happens?

I shall do this later when I'm back at home - I thought I was pretty good at spreadsheets but apparently not

edinburgher

I shall do this later when I'm back at home - I thought I was pretty good at spreadsheets but apparently not

Trust me, there's always someone better.

I used to think that I was ok, but then I met a work colleague whose fingers fly over the keyboard as he types up VBA macros from scratch! Now I feel decidedly mediocre

Like anything else, I'm happy to be confident with the bits of Excel that I like and use, the rest doesn't really interest me.

slowlyfading

edinburgher wrote: »

1) You're not including home equity
2) You should also be applying the FV formula for what happens to your spending during the first 17 years before you retire. Create another formula like the first one, but covering 17 years, with 4% return, a payment of 24,000 (positive this time) and a present value of -408,000. What happens?

-212,670,36

Don't understand

edinburgher

4%
17
24000
-408000
1
£203,253.49

=fv(4%,17,24000,-408000,1)

You end up with £203k left after 17 years - you don't need £408,000.

slowlyfading

Hmm... :think::think::think: given me more to think about - thanks!

Just hit 12,000 posts :j

slowlyfading

I love the fact that I have another day off tomorrow - love Bank holidays

The weather has been absolutely vile here today - the rain woke me up at 4am and it rain constantly until about 1pm. It stopped and there has been a bit of sunshine and now it's really gloomy again now. I suppose that's a typical bank holiday weekend.

Me and DH have stayed in today - didn't fancy trying to venture out anywhere, plus we're both quite tired. So it has been a NSD for me - I've set my target higher for May and think it'll be quite a stretch! However, starting as I mean to go on

Still contemplating all things early retirement/savings rates/investing stuffs - it makes my brain hurt after a while but I'm trying to read as much as possible and hopefully put some things into motion before the baby makes an appearance

I'm such a boring person

edinburgher

I'm such a [STRIKE]boring[/STRIKE] thoughtful person.

Fixed that for you

It really is a typical, soggy bank holiday. I have been keeping busy and have built our last piece of baby furniture, a lovely crib that secures to the side of our bed so that we can do the whole co-sleeping thing. I got a bit of a thrill as I practised seeing how close the baby will be to us with a stuffed toy

Not long now.