May 2024 Newsletter

MAY 2024 NEWSLETTER        

Recently a client asked me what advice I would give young adults starting out who want to save money and not be in debt like many people are in this country. 

When it comes to personal finances, the most basic concept still holds true. Spend less than you earn. It takes discipline, sacrifice and most importantly, understanding the difference between wanting something and needing something.

Here are some steps to help you get started:

Track your expenses for one month. Record your daily expenses in a small notebook or enter details on an e-calendar for at least one month. Categorize your expenses as fixed, variable, or discretionary. Fixed expenses include those for which the cost remains the same every month, such as your mortgage or rent, car payment, and insurance premiums. Variable expenses are those you pay on a regular basis, but with varying amounts, such as food, utilities, childcare, travel expenses, and credit card purchases or debt. Discretionary expenses are those you could forgo if necessary, such as dining out, frivolous shopping, and entertainment. After tracking your expenses for one month, you can begin to see exactly where your cash is going.

Prioritize your expenses. Rank each expense as “important”, “moderately important”, or “unimportant”. Carefully scrutinize each item, starting with the “unimportant” ones. Eliminate those items you can do without. You will probably find the most wiggle room with discretionary expenses. The savings you generate may be enough to begin a modest savings program. Pay yourself first. After successfully crafting a budget and identifying savings where you can, write yourself a check for the amount you saved and pay yourself first. You work hard to pay your bills, so make sure you make paying yourself a monthly bill.

By treating your savings as a weekly or monthly expense, you may be a lot more likely to set aside money for your future. As you watch your funds accumulate, you may find that putting yourself first has become its own reward.

On a personal note, Nick’s incredible season has come to an end. They lost in the Eastern Conference finals. It was an amazing year with Nick and his team setting numerous records. Last week, Nick was awarded Goalie of the Year, and it was well deserved. He led all goalies with a 1.96 goals against average and set the single season record with a 948 save %. He also broke the all-time win record by a goalie, had a 20 game win streak and got his Division 1 commitment. It was a dream season for so many reasons and I was so glad to be there for every game he played to enjoy it. Lexi got her grades and got another 3.8 in A.P courses. She will be visiting some more colleges over the next month, which she is very excited about. She loves making money at her job and I enjoy stopping by to see her and hit some golf balls while hanging out with my princess.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.