Latest Economic Review: Sunpointe Illuminations

New year, new budget!

New year, new budget!

Whether your gross monthly income is $8,000 or $80,000, understanding where that income is going is critical to financial success. 

Budgeting is often misconstrued as a tool only for those with limited resources, but in reality, it plays a crucial role in preserving and growing wealth. It serves as the foundation for strategic financial planning, aligning your short-term goals with your long-term vision.

We engage our clients in an exercise to delineate what comes in and what goes out to fixed and variable expenses.

This includes but is not limited to, reviewing W2’s, 1099’s, rental properties, and investment distributions while accounting for taxes, medical premiums, retirement contributions.

Every cash-flow conversation must start here.

Once we understand that, we can move onto what is referred to as “reverse budgeting.” This strategy focuses on the goals we are looking to accomplish rather than individual items like food or gas.

 Here is an example: A client brings in $20,000 of income per month, with $14,000 of expenses. A $6,000 surplus.

This couple wants to:

•             Save for a rental property (Monthly) –                   $2,000

•             Max out their Roth IRA (Monthly) –                        $583 ($7,000 annually)

•             Save/Invest (Monthly) –                                             $1,000

•             Donate to their Donor Advised Fund (Monthly) – $500

This is roughly $4,084 a month for their goals.

So, we automate that first $4,084 a month, which leaves $15,916 left over. This doesn’t mean they need to spend all this money each month, but they can spend it without feeling guilty as they have already hit their savings goal.

We recommend allowing this strategy to run for 6-12 months before assessing its effectiveness. Regular check-ins are crucial—ensuring your savings are on track and adjusting figures if necessary.

At Sunpointe, we are committed to tailoring budgeting strategies to align with your unique financial aspirations. Whether it is preparing for unforeseen risks, or managing complex tax obligations, we believe that a well-crafted budget is the cornerstone of financial success.

If you are interested in discussing personalized budgeting strategies or have any questions, please feel free to reach out. We look forward to supporting you on your journey to financial prosperity.

Lee celebrates his game winning putts and budgeting exercises the same way, with a fist pump!

This was from our team outing this month at Puttshack in St. Louis where Lee needed a hole-in-one to beat Michael and Jack.

One word described our time together in person: Supertube!