Purposeful Budgeting | A budget that integrates finances with your desired life

Budgeting shouldn’t be a limiting exercise designed to tell you how to spend your money. At its best budgeting is a tool for organizing your financial resources toward your great life, both now and in the future.

Also Covered:

A Better Version of Budgeting
Opportunity Cost
Changing Costs
Changing Priorities

Life PlanningJoshua Escalante Troesh, CFPJanuary 12, 2021Retirement & Legacy, Retirement Planning, Budgeting, Building Wealth, Financial Foundation, Financial Advice, Starting Out

As a college student, should I continue investing or save to pay off my debt first?

The good news is you are choosing between two good options, so you really can't go wrong with either decision. If your student loans are subsidized loans, then the U.S. Government is paying the interest for you, so there is no reason to pay anything on the loans until you graduate. If they are not subsidized loans, then you may want to consider paying just the interest on the loans and then contributing to (or even maxing out) your IRA. This will give you the best of both worlds: being able to invest in your IRA and . . . .

Life Planning, InvestingJoshua Escalante Troesh, CFPJuly 25, 2019Starting Out, Financial Foundation, Budgeting, Retirement Planning, Individual Retirement Account, 401(k), Emergency Fund, Debt Management, Debt payoff, Student Loans, Stafford Loan

As a college graduate with a new job, how should I structure what I do with my income?

As with many things in the financial world, the best answer is "a little of everything." You should get in the habit of investing in your retirement from day 1, even if it is a small amount. Those who put off contributing to their retirement for 'a little while' often find themselves 10 or even 20 years into their career with no retirement savings. To catch up they need to contribute huge portions of their income to retirement accounts. Here is my recommendation for what to focus on:

Life Planning, InvestingJoshua Escalante Troesh, CFPJuly 4, 2019Starting Out, Financial Foundation, Budgeting, Retirement Planning, Individual Retirement Account, 401(k), Emergency Fund, Debt Management, Debt payoff, Student Loans, Stafford Loan

Will my husband's financial advisor be able to learn about my personal credit card debt when reviewing our finances and joint tax return?

No, your financial adviser will only have access to information approved and provided by you and your husband. This information may come out if you and your husband were to submit your credit reports to the adviser for. . . .

Debt Management, Life PlanningJoshua Escalante Troesh, CFPJanuary 10, 2019Young Families, Debt payoff, Credit Card Debt, Debt Management, Starting Out, Choosing an adviser, Budgeting

How should I get out of debt?

Other than the credit card debt, your other debt and your housing costs actually look quite good. If you can get the credit card debt paid off, you'll be doing very well financially. Your best bet is to make minimum payments on your student loans and your car loan and put everything you can . . . .