Name: Create a kickass financial independence spreadsheet
Rating: 4.1 (92 reviews)

Turn what you know into an opportunity and reach millions around the world.

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Last updated 7/2019

English

What you'll learn

Course content

7 sections • 25 lectures • 1h 23m total length

Introduction2:06
This will give you an overview of the course
What will you learn from this course?
Who is this course for?
What do you need to know?
What we’re not going to cover?
Will there be an advanced course?
How is this course different?
An overview of the whole spreadsheet - download spreadsheet here!6:04
This will give you a top down overview of the spreadsheet. But be aware that we will now break it down so you understand how all the parts work. So don't feel overwhelmed at this point!
Cashflow Modeling1:45
Many people pursuing financial independence use rules of thumb for calculating how much savings they require. But people's circumstances are rarely that simple and so you often end up trying to change the rule to allow for your own personal circumstances like rental properties, other sources of income in retirement, one-off costs etc.
I want you to move away from having to fit your circumstances into a rule and give you a framework for how to think about this problem.
This framework is called cashflow modeling. All actuaries use this method and most of the finance and business world use it too. It will give you a very powerful way to model out your future income and expenditure and ultimately calculate whether you are financially independent.
Your Assignment To Summarize the Section0:17
Your Tasks to Summarize the Section

Income items6:15
We dive into the income section of the spreadsheet. This is where you can list out all the items that provide you with income now and later in life. It is totally flexible so you can specify exactly for how long you want certain income streams to last, and for how much.
Income part 26:05
We discuss the two income items that provide income from you pre and post tax savings. You can control the amount from each with two variables at the top of the spreadsheet that specify the annual withdrawal rates.
Your Assignment To Summarize the Section0:35

Expenses2:20
You will have an idea of your expected future expenses and you will see how to input those into the spreadsheet.
Inflation1:54
In this lecture you will learn how we incorporate inflation into future values in the spreadsheet. We assume that future values are all expressed in current money terms so you do not need to 'inflate' future values. When we take the investment return (in another lecture) we will use the real return that also strips out the impact of inflation.
One-off income and expenses4:51
Here we look at one-off items of income and expenditure. These are items that are too large to be taken from your regular income and are taken from savings. These might be things like house repairs, buying an RV, paying for college, or realizing the equity from a house sale. All these one-off items are captured in a separate part of the spreadsheet and you can add whatever payments you like with complete flexibility.
Your Assignment To Summarize the Section0:27

Introduction to the accounts1:52
This will give you an overview of how the spreadsheet calculates the year by year projection of the pre and post tax accounts.
Account projections5:54
You will learn how we project the account values by taking the beginning of year value and adding on additional savings, or deducting over-spend in any year, adding/subtracting one-off income/expenditure and subtracting any withdrawals. In the next lecture we look at adding on investment returns.
Account projections and investment returns3:43
You will learn how the spreadsheet incorporates investment returns to the account values.
Your Assignment To Summarize the Section0:21

One minute summary1:10
A summary of the spreadsheet in one minute!
Permissible values3:55
An introduction to some of the measures in the spreadsheet that warn you of illegal values.
Testing permissible values part 23:05
Case study 15:21
You will learn how to create a simple scenario with one source of income and constant expenses. We will chart the account values and change the investment returns to show the impact.
Case study 213:37
You will see a more complex case study where we have to alter the cashflows in order to get to a scenario where we are financially independent. There is a lot in this lecture and so you may need to view it several times in order to completely understand everything that is being illustrated.
But let me know if you have problems or issues!
Your Assignment To Summarize the Section0:55

A beginners course to discover when you can become financially independent!

+++ NEW MATERIAL ADDED - I've added student assignments to the end of each section to help you summarize the previous material. +++

What will I learn?

We will create a custom spreadsheet to model your different accounts and future spending strategies to find out when you can become financially independent. The final spreadsheet will be provided.

Who is this course for?

Everyone!
But you will find this particularly useful if your circumstances are unusual or complex. If you do not plan to have a clean working/retirement transition then this is for you!
It will help you model multiple sources of income (such as rental income), model a partner or spouse with different retirement plans or model future one-off spending commitments like college costs
If you’re an independent thinker and like a lot of control as to how you model your finances then this is for you!

What do you need to know?

This is suitable for everyone and I show you how to do it all.
The course will walk you through creating the spreadsheet but the spreadsheet will get provided to you so the lessons will help you understand how it all fits together.

What we’re not going to cover

Treatment of taxation. All values that we calculate will be before tax. This means that if you have a strategy that is highly dependent on Roth and non-Roth savings then you may need to adjust the output.

How is this course different?

The key issue I found with online financial independence tools is that they are either not flexible enough, too simple or too complex, or just not transparent
So I have balanced the three elements of FLEXIBLE, SOPHISTICATED and TRANSPARENT to provide you with a kickass tool!