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.
The nice thing is they usually go in conjunction.
ReplyDeleteTrue. Which makes the current rate of interest a little easier to accept.
ReplyDeleteWe 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.