As the year comes to a close, it’s the natural time to reflect on what we’ve accomplished and what we want to achieve in the year ahead. Over the years, I’ve found that helping people set and accomplish their financial goals is one of the most rewarding aspects of my work. Financial planning isn’t just about numbers—it’s about aligning your money with what matters most to you. This message is consistent throughout client meetings and our website where we repeatedly declare…

“We believe the highest form of wealth is the ability to wake up every morning and say, I can do whatever I want today.”

Achieving goals, however, is impossible without a clear understanding of where your money is going. A budget is the essential foundation for any financial plan, no matter your income, no matter your phase of life.

When working with clients, one of the first things we focus on is establishing a budget. This is true whether you’re working toward short-term goals like saving for a vacation, or long-term goals like financial independence in retirement. A budget is the blueprint for your financial life. Without it, you’re guessing at how much money is coming in and going out and that’s an easy recipe for stress and financial insecurity. Many people think a budget is just about tracking how much money you spend on groceries, utilities, and entertainment. The deeper layer to budgeting that the majority of Americans are scared to address is the difference between your needs and your wants.

Needs vs. Wants: What Are Your True Priorities?

In any financial plan, having a grasp of your fixed expenses (needs) and your variable expenses (wants) is absolutely essential. Though it shouldn’t need explaining, fixed expenses are those regular costs you cannot avoid or easily change, such as your mortgage, car payments, insurance, or utilities. Variable expenses—things like dining out, entertainment, clothing, and vacations—are where we have more flexibility and where many of us fall into a common trap: we spend money on things we think we want, but often we don’t truly know what we want at all. Granted, there is a lot of grey area between needs and wants based on every individual’s standard of living, but I’d challenge that we justify a lot of wants as needs to satisfy short term pleasures. It’s not easy though as we’re bombarded every day with marketing campaigns designed to tap into our emotions—ads that promise happiness, success, and fulfillment through a product or experience. A new gadget, a luxury handbag, or a vacation to an exotic destination may seem essential in the moment, but do they truly align with what we need or what we really want in our lives? Maybe they do?

The reality is that most people don’t take the time to reflect on their desires. We often mistake fleeting impulses for genuine wants, because we’re not fully aware of what would truly bring us happiness or fulfillment. Marketing and social media play a huge role in shaping our perceptions, subtly convincing us that we need more than we actually do. But when you slow down and reflect on your life and your values, your actual needs become more apparent. An expensive purse may provide a temporary thrill, but does it bring you lasting happiness or move you closer to your long-term goals? Or could that money be better spent on something that brings you more meaningful fulfillment—like building savings for your child’s education, or investing in experiences that strengthen relationships?

Taking the time to separate your true desires from the marketing-driven impulses can be transformative. When you truly understand what you want—what aligns with your deeper values—you can make more intentional, mindful choices about where your money goes.

The bottom line is this: money, when used wisely, is a powerful tool that can help you create the life you want. So many people live their lives in financial autopilot, spending on things that don’t truly matter to them, and often sacrificing their long-term happiness in the process. By taking the time to consciously align your finances with your goals, you can create a life that’s not just financially secure, but emotionally fulfilling as well.

As we look ahead to 2025, I encourage you to reflect on your own goals—both financial and personal—and consider how your money can better reflect the life you want to build.

In closing I’ll share three easy strategies that you should be incorporated in your new years resolution list after you establish a solid understanding of your needs, wants, and free cash flow:

💰 Choose a Budgeting System That Works for You
Personally, I’m an excel sheet guy—but whether you prefer a traditional envelope system or a digital tool like YNAB (https://www.ynab.com/), pick a budgeting method that fits your lifestyle and stick with it.

🤖 Automate Savings and Investments
Set up (or increase) automatic transfers to your savings and investment accounts so you’re consistently working toward your goals without thinking about it and effectively “stealing money from yourself.”

👨‍👩‍👧‍👦 Take Advantage of Tax-Advantaged Accounts
Maximize ‘tax qualified’ accounts like IRAs and 401(k)s for retirement, 529’s for education savings, and HSA’s for health savings. Retirement, Education, and Health should be high up on everyone’s value hierarchy and the IRS is incentivizing you to plan for these future needs via tax-advantaged growth vehicles.