3 Tips to Prioritize and Budget Your Living Expenses

In our view, your living expenses are one of the most significant parts of your financial picture.  They could dictate how much you’re able to save for retirement and spend in retirement. They may have a big influence on how much risk you need to take in your investment portfolio and could be a huge part of determining how much life and disability insurance you may need.  Your living expenses are crucial to the bigger picture and financial future, The sooner you get a handle on what’s going out of your accounts, the better this picture could look.

1. Set up a tracking system – This is something we offer as part of our planning programs, where you’re able to track transactions coming out of whatever accounts you link up to it.  We use a software called eMoney to integrate all your spending accounts, so you have access to a personal, custom dashboard. Your bank also likely has features available to make tracking your expenses easy. By connecting your spending accounts, you get a live view of how much you spend daily, monthly and annually. You can view categories of high spending and determine if there needs to be limits on certain categories to avoid overspending.  This is an obvious, but important first step.

2. Build good habits – We’re not advisors who believe in tightening purse strings to the point where you’re not enjoying the lifestyle you want. We do recommend that building good spending habits compounds over time.  It’s not about restricting lifestyle with a strict budget, rather making your spending more efficient and less wasteful. You work hard for your income, and you should be able to enjoy, however daily habits contribute to your long-term success. Identifying your long-term goals, setting up the proper accounts and budgeting your categories may help you reach your financial goals on time.

3. Filling your buckets – When we do a financial plan, it’s easier to visualize what “buckets” you’ll be directing your savings towards.  Think of your retirement plan at work as a bucket. In those buckets could be a non-qualified brokerage account and cash flow. When you get control over your cash flow, making your spending more efficient…you’ll then have a much clearer idea of how much of your savings needs to be directed to which bucket.

At Pistone Wealth, these are the steps we take to get your momentum going as strongly forward into the future as we can.  Much of what we do is influenced and driven by your living expenses, and how much of your financial situation is defined by it. We really believe this is the most important place to start.  We understand that it can be an uncomfortable, nervous experience if you’re getting things together for the first time, but we’re here to help you through the process.

If you need help prioritizing your living expenses and budgeting, please email sdieck@pistonewealth.com to setup a free consultation for you and your family.

Disclaimer: Nothing on this Blog constitutes for market predictions, planning advice, investment advice, performance data or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. Content in this material is for general information only and not intended for specific advice. Investing involves risk including possible loss of principal. From reading this Blog we cannot assess anything about your personal circumstances, your finances, or your goals and objectives, all of which are unique to you, so any opinions or information contained on this Blog are just that – an opinion or information. You should not use this Blog to make financial decisions and we highly recommend seeking a professional you trust who is authorized to provide investment and tax advice.  

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors, LLC and Pistone Wealth Advisors are separate entities.