To know the future of your finances, you have to start looking at tools that you have available in your present. Thanks to widely available technology, this process is easier than ever. Since your finances are all about the numbers, it’s no surprise that there are ways to calculate to a strong degree of accuracy what your financial future is going to be like.
Four tools that you can look into immediately include mortgage calculators, loan repayment schedule spreadsheets, trends in taxes explained in long form, and the differentiation between budgeting income and expense.
If you’re planning on utilizing a mortgage in order to pay for your house over time, then you probably need a mortgage calculator to help you with your organizational process. You would be amazed to find out what small tweaks can do to your overall financial outlook. Reducing the number of years it takes to pay a mortgage makes a huge difference. Or, increasing your monthly payment because you have extra cash around – that also makes quite a long-term difference on the amount of money that you have in the future. The point is, the more you learn to play with the numbers in a calculator, the better decision you can make on a month-by-month basis.
Loan Repayment Schedules
It may sound like a great idea to take out a school loan so that you can go to college. Typically, people will frame it in your mind as an easy way to get a whole bunch of money quickly, and in return, all you have to do is make lots of small payments over time to get rid of your debt. However, the smaller payments, or the longer your timeline, the more money you’re going to end up paying. Especially for people who have many thousands of dollars of debt – you may up paying double or triple the amount that you took out of the loan in the first place! Using calculation tools can help to prevent this kind of error in judgment.
For a very simple way to look into your financial future, create a set of tax trends for yourself. In other words, look at your salary and gross income for the past several years, and then look at how much you paid in taxes, and see where that financial line is moving. Do you have more or less disposable income every year? Once you can answer that question, you’ll be able to make better decisions about how you’re spending your money, especially on major purchases.
Budgeting Income Vs. Expense
Finally, when you install the latest budgeting apps, after you get all of your account information in, you’ll be able to tell very clearly where your income versus expense line ends. The tools that new budgeting apps give you are absolutely spectacular, and work nearly automatically these days. Everything is categorized and put into nice, clean charts for you to look at future financial potentials.