Four numbers: what you spend, what's essential, what's guaranteed for life, and the ratio between the last two. Every other month this year measures against these. About fifteen minutes with your statements.
Don't build a budget — you'll miss things. Take everything that came in, subtract what you saved and what you paid in tax. What's left, you spent. Including the roof and the vet bill.
Essential — what you'd still be paying in a bad year. Annual figures.
Discretionary — what you could actually cut. Honest test: if the market fell 30%, what would you really stop doing?
Only income that shows up every month for as long as you live. Portfolio withdrawals don't count — that's your own money and it can run out. Neither does rental income or part-time work.
Fills in as you go.
These figures come entirely from what you enter. Do the spending calculation for two or three years if you can — one year is a snapshot, three shows the pattern. Bring this to the January call.
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