Stephen Jensen
Executive Summary
For my personal project I
decided to work on my personal budget. I designed this project to help
alleviate two pain points I have, first categorizing my spending and second analyzing
home and car loans.
Keeping a budget is something
that I take very seriously. I really try to keep track of where I am spending
money and for areas where I can save. To track my spending, I use a VBA code to
categorize each transaction I make. In the past, I would spend three to four
hours a month manually entering each transaction into each designated category.
Needless to say this process is tedious and frustrating.
Along with tracking my spending,
I am also concerned about getting a car loan and home loan. I currently have a
car loan and will be looking to get a home loan in the next two to three years.
Being able to quickly crunch the numbers for different loan amounts, down
payments, interest rates, and terms is something that I would find very useful
now and in the future. I also am very interested to see how much interest I
will save over the life of the loan by making extra payments each month on my
loan.
The first part of my system
is designed to ease the annoyance of manually categorizing each of my
transactions. Now all I need to do is download my credit card transactions from
my bank and put them in a sheet in my workbook. Then simply click the button “Input
Transactions” and the code will automatically place each transaction in the
desired month and category. This code will save me three to four hours each
month and allow me to track my spending month to month.
The second part of my system
allows me to quickly analyze loans based upon the loan amount, down payment,
interest rate, and terms. This system allows me to enter these four inputs and
then runs a sensitivity analysis on each input. That is it shows me how the
monthly payment and total interest paid varies if each input were to increase or
decrease. I also included an amortization schedule based off of those four
inputs. The amortization schedule also allows me to enter an extra payment
amount, how many months I will make that extra payment and the number of months
remaining on the loan then calculates how much interest I will save. This will
allow me to analyze loans quickly and intelligently.
This system will be very helpful
for me to keep track of my spending and analyze home and car loans.
http://files.gove.net/shares/files/14f/jensen48/Jensen_Final_Project.xlsm
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