Articles by Oakleigh Wealth
Flow-Based Budgeting
Have you ever tried to make a budget, but never really bought into it? Maybe it went out the window when life happened. Perhaps you felt like the bad cop when trying to make sense of your credit card bill with your spouse. Or, were you were the one being interrogated?!
Budgeting is challenging. It can generate conflicts and induce guilt or shame. It can feel artificially constraining and time-consuming.
I’ve tried many budgeting systems, and I’ve quit them all. That is, until I learned about Flow-Based Budgeting.
Merging Financial Accounts In Marriage
The Atlantic recently published an article on the often-asked, titular question: “Should Couples Merge Their Finances?” Rather than give a direct answer, author Joe Pinsker presents a nuanced overview of the plusses and minuses of the three basic approaches: joint, separate, and hybrid. Crucially, he also points to the deeper truth that “the notion that you can keep your finances truly ‘separate’ is to some degree an illusion. Navigating the financial tensions and answering this question in the context of your marriage requires more than statistics about marital satisfaction or awareness of underlying gender equity issues.
Rethinking Monte Carlo Simulations
Monte Carlo simulations are a common tool in the financial adviser’s toolkit. They can help us frame the likelihood of success of a given plan by applying a large number of statistical simulations of future market returns to your financial plan.
On paper, this approach to financial planning makes a lot of sense; however, applying Monte Carlo analysis as an ongoing real-world decision-making tool often results in misunderstanding, anxiety, and/or overconfidence.
8 Things You Should Spend Your Money On
Most of us don’t need any more help perpetuating our arrival fallacies or justifying impulse purchases. Ad agencies, search engines, and Instagram algorithms already have us figured out. Ask my wife, I have no trouble justifying any number of purchases based on how much time they’ll save, what a great investment they are, or how much better off our lives will be once we have ______.
Then there are others whose struggles are in the opposite direction. We all know friends and family members who have plenty of money, but have difficulty spending it, even on things that would really improve their lives, ease some burden, or add a modicum of comfort or enjoyment. “Penny wise, but pound foolish,” as they say..
Whichever camp you fall into, this list of “8 Things You Should Spend your Money On” is for you.
Budgeting is Optional (Tracking is Necessary)
If you’re like me, the idea of budgeting is not very high on your list of things you like to do, falling somewhere between going to the dentist and doing your taxes. If you’ve ever tried co-budgeting with a spouse or partner, it’s at best “no fun,” and at worst it’s an area rife with disagreement, judgment, and defensiveness. You may think you already know where your money is going (you don’t), or perhaps you don’t really want to know… It’s no wonder we don’t do it.
How much should I be saving? Am I on track?
Your savings rate tells an important story about your current financial wellness and preparation for long term financial security. Setting a reasonable savings goal and sticking with it is highly correlated with financial independence. In this article, we'll answer following questions: How much should I be saving? Am I on track? How can I increase my savings rate?
When can I afford to Retire? Part 3: Expenses
Making the transition from building your savings to spending it down can be a jarring one, but arming yourself with knowledge about your actual expenses can give you the confidence to make the transition, which may even be feasible sooner than you think.
Can I Afford to Retire? Part 2: Income
Once you’ve given some thought to what your ideal retirement looks like (see part 1), answering the question “When can I afford to retire?” becomes an exercise in comparing expected future expenses with expected future income over the rest of your life and your spouse’s life. In this second part, we’ll look at the income side of the equation and ask, “where is the money going to come from?”
Invest or pay off debt?
No one likes the feeling of being indebted, whether it’s actual debt (student loans, mortgages, credit card…), or more generally in the sense of feeling an obligation to return some favor. And as this opening observation demonstrates, the decision of whether to pay down debt is often as much one of emotion as it is cold financial math. Therefore, answering the question of whether I should pay down my mortgage early or try to invest the savings in the market requires looking at both the math and the emotion of debt.
