Pure’s Senior Financial Advisor, Joe Schweiger, CFP®, AIF®, explores budgeting through a financially fit mindset, emphasizing consistency and practicality when building a resilient budget for the new year.
Transcript
January is the time for setting fitness goals, but if your finances stepped on the scale today, what shape would they be in?
If you think of a budget as a workout plan, the goal isn’t perfection — it’s building strength over time. Today we are going to approach our financial fitness from a training perspective by being honest with where you stand, figuring out where you want to go, and building consistent habits to maintain your long-term financial wellness.
To kick off our strong 2026 budget, start with a “baseline check-in.” Every fitness plan starts with knowing your current condition, and we’re going to apply that concept to our wallets by looking at your actual 2025 spending. Break down your actual spending, and not just estimates, into three buckets:
- Fixed expenses, which will be your essentials
- Variable costs, like groceries, utilities, and childcare
- Lifestyle choices, which encompass things like dining out, subscriptions, and travel
This breakdown of your spending will act like your “starting weight” and will help you build a budget that reflects real life, not an idealized version. When you start with your realistic finances, it’ll be easier to stick to the goals that are within your reach.
The next exercise for a financially fit 2026 budget is to think about what extra weight you’re going to have to lift to build that strength as you move throughout the year. Consider expected cost changes as the “extra reps” you need to prepare for. This could be things like insurance premium increases, adjustments to rent or property taxes, annual fee changes, anticipated income fluctuations, and whatever else might require a little more from your wallet. Planning for these early may help reduce financial strain in the year.
Now that we’ve got a better idea of our starting point and some adjustments to make to our routine, we’re going to move to our “goal ladder” exercise. In fitness, a ladder increases intensity step by step. Apply that same structure to your savings goals by gradually increasing contributions over the year. Depending on your particular goal, this could look something like starting with $50 a month and increasing that savings by $10 each month. Once you’re halfway through the year, you can reassess your progress, and you’ll be further along on your goals than if you kept your savings efforts to a flatline pace. A ladder approach keeps the pace manageable while building long-term financial strength and security.
Lastly, perform a simple “stress test” to highlight where you need more cushion. Ask yourself, “What would happen if a key expense increased by 10%?” External factors like inflation and interest rate pressure can affect both spending and portfolio behavior, but this is your opportunity to gain a little more insight into what this means for your unique financial situation.
Keep in mind that just like a workout, your 2026 budget doesn’t need to be extreme to be effective. Think of your financial goals in the new year as a steady workout that’s comprised of small and consistent steps that build resilience over time. The stronger your financial routine becomes, the more flexibility you’ll have when life throws something unexpected your way.
If you want to talk about how to increase your financial fitness in 2026 and beyond to achieve your goals, reach out to schedule a free financial assessment to review your situation.
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IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
AIF® – Accredited Investment Fiduciary designation is administered by the Center for Fiduciary Studies fi360. To receive the AIF Designation, an individual must meet prerequisite criteria, complete a training program, and pass a comprehensive examination. Six hours of continuing education is required annually to maintain the designation.
