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Do you know how long your savings need to last if you decide to make your summer vacation a little more permanent? Or how long you have to find a new job if you get laid off? To answer these to questions, you need to know your burn rate.
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THE BURN RATE
A Visual Aid for Your Spending Habits
Joel Wenger
Invest Safely, LLC
This guide is for informational and educational purposes only.
Do you know how long your savings need to last if you decide to make your
summer vacation a little more permanent?
Or how long you have to find a new job is you get laid off?
To answer these to questions safely, you’ll need to know your .
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What Is The Burn Rate?
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CALCULATE YOUR BURN RATE
1) Find Your Cash
2) Add Up All Your Expenses
3) Cash ÷ Expenses
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Find Your
Cash
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Cash you have
on hand
(in your wallet,
underwear
drawer, piggy
bank, etc.)
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Cash you can access
really fast
(savings accounts,
checking accounts,
etc.)
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$100 + $500 + $5450 =
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Add Up All
Your Expenses
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January Expenses
Mortgage Payment Home Maintenance
Vehicle Maintenance Natural Gas Bill
Electric Bill Water Bill
Cable Bill Cell Phone Bill
Medical/Dental Bills Gas
Groceries Credit Card #1
Credit Card #2 Credit Card #3
Dues & Subscriptions Charity and Donations
Gifts (Family/Friends) Date Nights / Family Outings
Food (Coffee, Dining Out, etc.) Dry Cleaning
Hair Cut Cash Withdrawals
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000 per year
$3,000
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Divide Your
Cash By Your
Expenses
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$6,000
$3,000/month
$6,000
$36,000/year =
- OR -
=
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