Budgeting Shouldn’t Be Spooky! | Steven Evensen

Budgeting Shouldn’t Be Spooky!

By: Steven Evensen

Budgeting often feels like one of those dreaded financial tasks we tend to avoid. Although I am a Financial Advisor, even I don’t always love sitting down to review my own budget. But with the right approach, budgeting doesn’t have to be scary at all! This October, I am going to share what has worked for me to take some of the spookiness away from one of my least favorite tasks in personal finance. In this article, I’ll go over how reverse budgeting, automating your savings, and budgeting software can make it easier to handle your finances. 

Reverse Budgeting: Start with Savings Goals 

When most people think about budgeting, they start with their expenses; housing, food, transportation, etc, and work their way down to savings. But there’s another alternative: reverse budgeting. 

With reverse budgeting, you flip the traditional method on its head! You begin with your savings goals—whether that's saving for retirement, building an emergency fund, or saving for a home—and prioritize setting aside a certain percentage of your income toward those goals. Once you’ve earmarked money for savings, the rest of your income is available for spending. 

I love this strategy because I spend less time reviewing each little expense (which often fluctuates monthly anyways) and can be confident that I am on track for my goals from the start. This approach allows you to focus on what truly matters for your financial future, with the confidence that your savings are covered. 

Automating Your Savings Goals: Set It and Forget It 

In a world full of distractions, even the best budgeting intentions can get lost in the shuffle. That’s why automating your savings is one of the most effective ways to keep your finances on track. When you automate your savings, you’re ensuring that a portion of your income goes directly into your accounts before you even have a chance to spend it. 

Much like setting up Halloween decorations that light up automatically every evening, automating your savings works behind the scenes, requiring little ongoing effort. The beauty of this method is that it’s practically foolproof—once it's set up, you don’t have to worry about it. 

Personally, as I save for retirement, I am able to enjoy my work and social life significantly more while having the peace of mind that I am on track for my goals. 

Whether it's allocating money to a 401(k), an IRA, or an investment account, automated savings make sure you stay on track for your financial goals without ever having to lift a finger.  

How Technology Can Make Budgeting Easier 

Let’s face it, manually tracking your expenses can be a tedious and time consuming task. Luckily, we live in an age where technology can do the heavy lifting for us. There are many apps that are designed to help you create, track, and manage your budget without the hassle. 

By using technology, you can gain a clearer picture of where your money is going, and how much you're saving, all with a few clicks. It’s like having a budget in your pocket—without having to sort each item out from your bank statements. 

I do this for myself and my clients because it saves me a ton of time. Trust me, I will never go back to an excel sheet budget again. 

Don’t Let Budgeting Spook You! 

Budgeting doesn’t have to be as spooky as it seems. By starting with your savings goals, automating them, and leveraging tools, you can take control of your finances without any fear. Plus, these strategies help you avoid any nasty financial surprises that may come lurking around the corner! 

With the right approach, your financial future will be less scary and much more secure.  

If you have any questions, or would like to dive into more details, please book a time with our team here. We appreciate you taking the time to read our article and are honored to support you with your financial journey. 

Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: http://www.adviserinfo.sec.gov . 

Steven Evensen is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$3.16B billion in assets under management as of 9/30/24.  The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."