A personal financial calculator is an online calculator used to calculate your monthly income versus your monthly expenses. It is used to determine your financial position and your spending pattern. It helps you to decide on what to do such as to ascertain whether you can afford to take a personal loan or paying off existing loan by increasing your monthly instalment. It also helps you in deciding which investments you can afford. This article provides a guide to using a personal finance calculator.
How to use the calculator
A personal financial calculator requires information regarding your expenses vis-a-vis your income. This include information such as your monthly salary and income from other sources that can be loaded onto the calculator against your expenses like day-day-expenses, existing monthly loan repayments and other monthly expenses. The calculation results will show either a positive balance or a deficit which you can use for planning purposes. Questions answered when using the calculator If you use this calculator, you will be able to answer questions like, how much you should spend monthly, how much is required for a loan repayment, how much should you reserve for emergencies, what is required to cover your day-to-day expenses and what investments can you afford.
Where to get a personal financial calculator
A personal financial calculator is a free online service which you can get on the internet with unlimited access. Various personal financial calculators like investment calculator, budget calculator, pension calculator, calculator retirement, calculator loans and interest calculator can be used to establish your financial position and make a decision based on the results.
Why using the personal financial calculator
Future financial planning The personal money calculator is important to use when planning for your future financial expenditure. It is used to determine which investment you can afford to take, any loans you qualify and how much to save for life investments. You can also use the calculator to compare different investments such as taking a retirement or pension policy which entail an increased monthly expenditure. For budgeting purposes The personal financial calculator is used to budget your personal finances. It is used to ascertain your expenditure budget vis-a-vis your income and how you can balance the two. You can use this calculator to determine if you can afford to take another loan or if you increase your monthly instalments on existing debts. How much to spend The financial calculations are used to determine how much to spend and to streamline critical expenses to spend money on.