Note that the “base budget” for this family is $9k. Above I provide a practical example of the ebbs & flows of income and how to use your emergency fund to supplement during the down months. For example, in the first month, we have an income of $7k. We would take $2k from our emergency fund to supplement our income.
Where does the surplus go?
Refer to your 1-Page Financial Plan. For best success, automate as much of the net worth-building process as possible!
Information in this material is for general information only and not intended as investment, tax, or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.
Note: Continue to track your trailing 12 months income and make adjustments as needed to prevent a long-term deficit from occurring.
LPL Tracking #1-05132413