Debt Man Walking Calculators
If you know how much you can afford to put away each month or each year, plug it into this calcuator and find out what it could be worth in the longer term (min 10 years).
Savings known calculator ...
Big Dream calculator
Got a big dream (like Stallone had with Rocky) that will cost you loads of bucks? Got a few years to plan? Find out here how you can get there.
The famous DMW calculators!
These are the two calculators from "Step 8" of DMW.
They are designed to show you how taking on different levels of risk can help you achieve your financial targets faster.
The example used in the book was $500,000 in 12 years.
The first calculator, the "Big Dream Calculator", is designed to show you how you can get to a particularly big target.
The second, the "Savings Known Calculator", works in the opposite way - you know how much you can save and this will show you how it grows over that period.
Big Dream Calculator: Pick your long-term dream figure and the calculator will work backwards from there, given different investment risk levels. Savings figures are annual.
Savings Known Calculator: You know how much you can save. This calculator will show you how it could work for you over time, given different investment risk levels.
Assumptions and disclaimers: If you want to know what the calculations are based on, click on this link.
What are they calculating?
The five different investment options that are used are:
1. A straight savings plan, where your money earns 6% interest a year.
2. A "balanced" fund, where 60 per cent of your money is in growth assets and the remainder is in income-based assets. Expect an 8.5% return.
3. A "growth" fund. The whole lot is invested in shares and property. Expect 10.5%.
4. A margin lending investment. Every dollar you put in is matched with a loan. It allows you to double how much money you have in the market. A return of 10.5% on the assets, interest at 8%.
5. Fully geared. This is an entirely debt-funded investment, like an investment property or a fully-geared share investment loan. Returns of 10.5%, with interest costs of 8%.
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