Saving for a Home - Excel Financial Planner

Should you rent or buy a home? Many buy if they can, and if that is your route, start planning now. If you are trying to save money for a new home, it might help to know what your after tax free cash flow looks like over the next 5 years. I have built a nice tool that may help you see how long you are going to have to save for (budgeting) and how much free cash you will have pre and post home purchase.

$45.00 USD

The template will be immediately available to download after purchase.

saving money

This template is part of the personal finance bundle (7th category down): here.

Before we get into the key features of the home planning saver template, let's talk a little bit about personal finance. You should definitely figure out your current debt situation. Most banks will not give you a mortgage if you have a lot of outstanding / unpaid / defaulted debt. Pay off some of your loans and it could mean a better credit rating, lower interest rate, and a successful home buying experience. Don't be in a rush and if it takes a few years to get yourself financially sound, that is completely fine. The mortgage lender wants you to be healthy financially because it is less risky for them.

The key assumptions in this template will be gross monthly income, monthly taxes (federal/state/city), and monthly living expenses. You can adjust these on a monthly basis over a forward 60-month period. Based on that, the model will calculate your expected savings and test that against how much money you need to make a down payment with and still meet your cash reserve criteria.

All you have to do in this model is change all the light yellow cells to meet your specific situation and it will tell you the month you should be able to buy a new house as well as how much cash flow you will have coming in per month before and after the purchase.

One of the more advanced features of the logic here is dynamically taking out the old rent/mortgage you were paying and replacing it with the new mortgage. This was quite difficult to make work in a dynamic way, but it does.

There is a summary chart that displays your ongoing cash position after taxes that may be useful so you can see what kind of savings you will have over the course of the next 60 months as well as the expected annual savings, assuming your cash in and cash out match the assumptions entered.

The idea behind this financial model was to make something simple enough that anyone can use it, but also provide enough dynamic features so that a wide range of scenarios can be tested.

The template is also available in Google Sheets.