the Facet Wealth way
create spending plans based on your life
The budgeting process can be frustrating and let’s be honest – they don’t always work and life can get complicated. Simplify the process by shifting to a forward looking spending plan. Let awareness of where your money has gone in the past help inform what matters the most going forward…aligning your resources with your life goals and values. A more purposeful spending plan helps you focus on your priorities.
PRINCIPLES OF CASH FLOW
We allow these key principles to guide our Best Next Steps and how we personalize them to you, your plan, and your long-term financial life goals:
1 - Spending plans should be personal
It all starts with a personal plan. A financial plan for your life is the foundation of your financial health and any goals-based strategy.
2 - Assess your overall financial health
Awareness of your current financial landscape will help you find the best cash flow management style for your personality. Start by assessing general financial wellness measures and review recent spending trends.
3 - Cash flow plans lead to real change
Anchor in the positive! The ideal spending plan will help you maintain positive cash flow. Without it, we lack the resources to take the next steps in our financial life journey.
4 - Think BIG not small
Know the primary drivers of expenses and focus on them. The three primary categories help you simplify your plan to see big results. These categories include (1) Savings and goal funding, (2) recurring expenses, and (3) daily spending or everything else.
5 - Start from the top
Identifying your net income is the obvious place to start. Then, pay yourself first. Savings and goal funding should always come next in a spending plan.
6 - Purpose drives progress, not perfection
Sometimes our best laid plans seem to fail with their first exposure to reality. When it comes to mastering your spending plan, keep in mind the purpose - achieving your most important financial goals and aligning your wealth with your why. The perfect budget is one that works for you.
7 - Make the irregular, more regular
Not all expenses occur on a monthly basis and life can be unpredictable. Prepare for unforeseen and irregular expenses with a planned spending account.
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Disclosure:
Facet Wealth, Inc. (“Facet”) is an SEC registered investment adviser located in Baltimore, Maryland. This is not an offer to sell securities or the solicitation of an offer to purchase securities. This is not investment, financial, legal, or tax advice. Past performance is not a guarantee of future performance. Please see our disclosures below for additional information.