I am happy to share my Model Financial Budget Plan. I call it JK’s 8% Formula for Financial Wellness. Creating a Model Budget is very difficult as the underlying parameters (family situations) are so varied and unique to each family. However this has been a want from most of my workshop participants. Also I had to develop a model that is robust enough to help me with my consulting needs for private clients.
After several combinations and trials, I could arrive at this model which is:
- Numerically sound,
- Has a scientific base and
- Intuitive for
- Easy implementation and sustenance.
The model can be tweaked / fine-tuned to suit the needs of specific families with ease and confidence. Find here the JK’s 8% Formula for Financial Wellness done for persons in the age group of 25 and 30. I have made the sample for different income levels starting from 20,000 per month going upto 40,000 per month. The readers can down load the calculations here:
The beauty of the model is that it uses the number 8 as its building block. this number is arrived at based on the annual income converted to monthly share (100%/12 = 8.33%). I have rounded this to 8% of intuitive ease. The different expenses, savings and investments are based on multiples of 8. this is the reason I can the method: JK’s 8% Formula for Financial Wellness
JK’s 8% Formula for Financial Wellness is applicable for any income level. The Scientific Base ensures that. The model in the basic form covers the following:
- Different Types of Expenses: Personal, Rent, Living, House Hold and Unplanned Expenses
- Insurance: Life and Health
- Retirement Planning Investment
- Investments for Children
- Creating a Corpus for Short Term Purchases
The readers can use the following calculators to find their Insurance needs and their Retirement needs.
For Micro-Planning of their budget, the readers can make use of this sheet:
This post is an introduction to JK’s 8% Formula for Financial Wellness. More to come. Happy reading.
For detailed planning and implementation of your journey to Financial Wellness please be in touch with me at karthikeyanjawahar@gmail.com; +91-98942-57406.
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