The Big Stuff

In my last letter to you, I mentioned a class I was teaching at church about finances and how the principle of paying yourself first takes discipline, but that is where wealth is built. Now I’d like to share a second principle that is often overlooked.

BASIC PRINCIPLE #2: Get the big stuff right.

When it comes to budgeting, it is so important to get the big stuff right. Historically, whenever I hear a budgeting discussion it’s without fail centered on how to clip coupons, pack your brown-bag lunch and for the love of lattes, “DON’T STOP at STARBUCKS!”

I’m here to tell you, these things help, but they are small potatoes.

What’s the big stuff? Your house. Your cars. Your health. Your vacations. Your giving. Rarely are we conscientious of making decisions about how much income we are spending on these things. Instead, most will simply consider whether they can make the payment. Tsk-Tsk. If you want to be secure financially, consider your finances in percentages.

For me, Tithing is a principle of faith that I follow so here’s an example of how I would make a decision concerning how our family’s income is spent.

10% Tithe to the Church

25% or less of your income should be spent on a 15-year mortgage. Even better to be mortgage-free!

5% or more of your income should go to investing (once you have your emergency fund and are consumer debt-free).

The other big expenses for most families are transportation, health care, insurance, daycare, food, cell phones, childcare, and activities. I am not going to make you all mad and put recommended percentages on these, but I invite you to think outside the box on some of these things. Be thoughtful about how your family allocates its resources and make sure your spending matches your priorities.

Can you eliminate a car? Can you make your own healthy food? Can you and your children do a few less activities? Spend some time thinking about these things and your options. There are a ton of great ideas out there on how to save money on all these things, just decide to get the big stuff right.

The next time I write to you, we’ll consider where that 15% for investing should go. If you’d like a more detailed discussion of your situation, please feel free to drop me an email or give us a call 509-628-1358


Monson Wealth Management Flat-Fee Program

Most Registered Investment Advisors charge a percentage of assets under management, which translates into the more money you have, the more you are charged, even though the servicing time may be the same as someone who has one-quarter of what you do.
Our Flat-Fee program is designed with these clients in mind. We don’t charge you more just because you have more.

Give us a call and in 15 minutes we can assess your situation to see if this makes sense for you.

“The MWM Flat-Fee Program is designed to give clients that have over $500k invested a fair shake.”

Eldon Monson CFP®, RICP®
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Live Life On Your Terms

Whether you want to travel more, do things you’ve always wanted to do, or just spend more time with the grandkids, we want to be your guide to help you get there.

Live Life On Your Terms

Whether you want to travel more, do things you’ve always wanted to do, or just spend more time with the grandkids, we want to be your guide to help you get there.