7 Financial Planning Calculators to Help You Make Smart Money Decisions

Financial planning is important for attaining financial freedom and security. It’s also a process of figuring out the right way to manage one’s finances and investments. Using tools like financial planning calculators can help determine how much money you need to save for specific goals.

Calculators can also use your cash inflows and outflows to guide you on how to make the right decisions about your money. You may have some extra cash coming in but you don’t know where to invest it. Using financial calculators and apps like GuardianWealth can help you make sense of your options.

Best Financial Planning Calculators

1. Saving goal calculators

Saving money is the key to achieving your financial goals. For some it is easy, but for most people it is difficult. In fact, 25% of families in the United States do not have savings. If you’re interested in saving, the first thing to do is determine how much you need to save each month to meet your target amount.

Regardless of the reason you want to save, using a financial planning calculator is necessary. As soon as you decide to save, first identify your financial goal and desired timeline. Through the savings goal calculator, you can identify the amount you need to save every month to achieve your goal.

It is essential to plan, and to start saving now. Your plan will help you manage your financial obligations, such as paying your bills. You can reduce your expenses and shift your finances to improve your capability to save.

Saving means setting aside an amount of money each month. To figure out the amount and timeline, use a calculator that asks for information such as:

• The amount of money you need
• Your current savings
• When you will use the money
• Your savings shortfall
• APR growth

The saving calculator will help to compute the value of the amount you save and the total interest earned. You will generate more earnings by adding money into your savings account more often.

Try GuardianWealth’s free saving goal calculator today.

2. Investment Calculator 

Investing is a profitable endeavor, but it can be risky if not managed properly. A sustainable investing strategy can ensure security for your family’s financial future. An investment calculator can help you decide how much to invest and help you meet your goals. This financial planning tool can identify a plan for achieving your investment goals. It shows a suggested initial investment depending on your risk tolerance and how often you would make your contributions. That timing can affect the growth of your money and investment.

There are many ways to invest your money. The number 1 secret to wealth creation is the power of compounding. Start investing early and the power of compounding will make you rich. Albert Einstein calls this the 8th wonder of the world. A personal finance app like GuardianWealth is a great place to start. We like GuardianWealth because it is a one-stop-shop to all your money needs, including financial literacy, budgeting, saving and investing. With GuardianWealth you can even form a savings group, surrounding you with the tools and resources to achieve financial freedom.

An investment calculator will show you the required starting balance you need to invest as well as how much you should contribute over time. It will also give you the projected return rate of your investment. When planning to invest, it is important to consider the time frame. Investing for a long time will earn you more compound interest. To ensure that you maximize your returns and minimise your losses, don’t pick stocks. This is speculating not investing. Instead, invest in a diversified portfolio of stocks and bonds that reflect your risk profile, financial goals and timelines. GuardianWealth app robo-advisory feature uses an algorithm that is built by financial experts to invest for funds for the long term in proven investment strategies.

Try GuardianWealth’s free investment calculator today.

3. Debt reduction calculator 

No matter how well we manage our finances, there are instances we get into debt. There’s nothing wrong with getting into debt as long as you have the capability to repay it. You want to avoid having too many debts and not knowing the way out.

We know debts involve interest payments that can almost double or triple the principal amount. Financial freedom requires firm determination and a good plan. A debt reduction calculator is another financial planning calculator that will help you manage your debts.

There are two strategies for using a debt calculator. One is the avalanche, and the other is the snowball. The avalanche strategy is about paying the highest interest off first, while the snowball is the strategy in which the debtor will pay the lowest balance off first. By using the snowball strategy, you can see the effect of paying off your debts quickly. If you prefer to use the avalanche strategy, it will take time to pay off your debt completely.

Regardless of the strategy you choose, make an actionable budget and stick to it.

Try GuardianWealth’s free debt reduction calculator today.

4. Early loan payoff calculator  

You can use the early loan payoff calculator if you want to avoid incurring high interest. We know that the interest of the mortgage gets higher as you pay in longer terms. Sometimes the interest incurred is higher than the principal amount. A financial planning calculator can identify easy payment options.

Using this calculator will help you understand your mortgage payment, including the principal amount and the interest. Paying in advance of your principal amount reduces not only the loan but also the interest.

There are several approaches to make early payments for your loan. You can do it bi-weekly, make extra payments, or refinance the loan.

Planning is important if you’re considering making an early payment on your loan. Aside from paying early, you can also prefer to make extra payments to shorten the timeline. With this plan, you’ll need to create a budget that would not affect your other financial obligations.

You can also increase your income in order to have extra money that can be used to repay your loans in advance. Boosting your income is possible by taking an extra job or selling something that you seldom use. Then you can use the money to pay off your loans.

Try GuardianWealth’s free early loan payoff calculator today.

5. Basic Retirement saving calculator 

Many people avoid discussing retirement. But retirement will happen at a given time, and it’s nothing to worry about as long as you are prepared for it. Retirement gives you the independence to do anything. You can go anywhere you want without worrying about your work.

But not all people have sufficient funds for retirement. That’s why working people must start planning long before their retirement date. Using a financial planning calculator will help you plan for your retirement. Preparing ahead of time will give you more options for living your ideal life after your career is over.

The retirement saving calculator will help you determine the amount required to put aside every month until your expected retirement date. Saving long before the expected date will lead you to a stress-free process.

Keep in mind that there are important financial and personal factors to consider. Retiring can be costly if you are not prepared. Do you think your pension is enough to sustain your daily needs, medical expenses, and more? If you don’t have medical insurance, your monthly pension most likely won’t be enough. Thus, saving for retirement while still working is the best thing to do.

If you think your savings are not enough, you may encounter challenges when you retire. A financial planning calculator will help you find out when you should start saving for your retirement. It’s best to start by saving small amounts and then increasing them each month. The earlier you save, the more money you will have to enjoy during your golden years.

Keep in mind that there are many uncertainties that can arise after your retirement. Thus, make sure to have enough money available to cater to your needs, especially medical needs.

Try GuardianWealth’s free basic retirement saving calculator today.

6. Retirement planning calculator 

Retirement for some is the time to enjoy freedom from work. If a retiree is financially prepared, it is time to have fun with travels and adventures. But what if you don’t have any savings? Saving for retirement early is very important to ensure security once you stop working.

This might be the right time to save. Maybe you still have 20 years before retirement. Your present financial obligations should not stop you from saving. Even saving a small amount is a good first step. It will save you from financial anxiety during your sunset years.

To determine the amount you need for a comfortable retirement, you must consider your expected lifestyle after ceasing to work. If you want a low-key lifestyle, don’t bother saving much. A retirement calculator requires some details:

• Your current savings
• Number of years before retirement
• Annual income

The bottom line is that regardless of the earnings you receive from your work, it is best to set aside extra money for your retirement.

People must consider retirement savings seriously. It is not good to depend on the Social Security pension during your old age. It is not enough to sustain all your needs. Lucky if you have another monthly pension from your previous job. To have a comfortable and secure retirement, consider saving early as an obligation.

Try GuardianWealth’s free retirement planning calculator today.

7. Net worth calculator 

The first step in assessing your net worth involves identifying the assets that you own and the liabilities that you owe. Assets include a house or car, and other belongings including those you are still paying for. Savings, checking, and retirement accounts are considered assets.

Liabilities, on the other hand, include the money you need to pay such as debts in your credit cards and other loans. We count the mortgage for your home as a liability.

The basic formula is assets – liabilities = net worth.

Do not include your income in the computation for the net worth. By using a net worth calculator, you will have a clear view of the actual amount of wealth you have access to.

Try GuardianWealth’s free net worth calculator today.

Conclusion

Financial planning is key to enjoying a healthy and secured financial life. This process offers countless advantages that have a positive impact on our lives. Having a sound financial plan helps set goals. It will also motivate you to commit to your plan. The plan will serve as a guide in making decisions and taking necessary actions.

Having a clear financial goal can limit your worries about the future. Through the help of different financial planning calculators, you can determine what you need to save or invest today to achieve financial security in the future. Whether you’re aiming for a short-term or long-term goal, it can only be realized with sound financial planning.

Try GuardianWealth’s free financial planning calculators today.