Seemingly impervious to the uptake of knowledge -- Henry Rollins.
Saturday, January 14, 2012
Finances
Just looking at the long-range financial planning spreadsheet. Amazing how wonderful life can be just by flicking the Interest percentage up a point...or how devastated it could be by flicking the Inflation one.
True. Which makes the current rate of interest a little easier to accept.
We forecast using a really basic this year's expenses plus projected inflation, this year's income plus historical interest, minus projected extraordinary expenses, plus projected extraordinary income. Seems to work. And I dial the interest rate back about a percent from what I really expect, and the inflation up about the same amount. Tends to keep the surprises down. Well, the systemic ones, anyway.
2 comments:
The nice thing is they usually go in conjunction.
True. Which makes the current rate of interest a little easier to accept.
We forecast using a really basic this year's expenses plus projected inflation, this year's income plus historical interest, minus projected extraordinary expenses, plus projected extraordinary income. Seems to work. And I dial the interest rate back about a percent from what I really expect, and the inflation up about the same amount. Tends to keep the surprises down. Well, the systemic ones, anyway.
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