4 min read

As a Financial Planner, I often encounter the misconception that financial planning is reserved for the wealthy. This couldn’t be further from the truth. If we followed that logic, only athletes would need performance coaches, or obese individuals consult with nutritionists, and doctors would only treat very sick individuals..

The reality is that anyone, regardless of income, can benefit from some guidance and a relationship with a planner. Whether you're building wealth or planning for future goals, a financial planner helps you make informed decisions and maximize opportunities—just like a trainer or a nutritionist supports overall well-being.

Today, let's look at how even a modest salary can be managed to meet life goals. The case of Joaquin Mazza, a single professional in his mid-30s. He earns $70,000 per year and has a few key goals in mind:

Increase his salary over the next few years
Buy a new home
Build financial security

Where He Stands Financially

$50,000 in savings
Small remaining balance on his student loan
No car payments (paid off)
Between $0-500 in revolving credit card debt each month
Pays $1,500 monthly rent

Joaquin is in a relatively good financial shape. He has savings, minimal debt, and stable living expenses, but to achieve his goals of increasing his income and buying a home, he needs a clear, actionable plan.

Someone like Joaquin may think he doesn’t need professional advice because he’s doing 'okay,' but even with a good start, a financial planner can help him avoid common pitfalls, prioritize his goals, and make more strategic decisions—like balancing short-term savings with long-term investments to increase his overall wealth.

Build a Personal Budget

A strong financial plan always begins with a budget. A well-constructed budget gives perspective, helping you to clearly see where your money is going and how much can be directed toward future goals. Below is a breakdown of how Mr. Maza’s $70,000 salary could be allocated:

Monthly Salary Breakdown (Post-Tax Income: ~$4,600)

Joaquin Maza Monthly Budget

Here’s the pie chart that visually breaks down the monthly budget allocation. It illustrates how he can allocate his income towards rent, savings, debt repayment, living expenses, discretionary spending, emergency fund, and retirement contributions.

Housing (Rent): $1,500 (32.6%)
Savings/Investments: $800 (17.4%)
Debt Repayment: $200 (4.3%)
Living Expenses (Food, Utilities, etc.): $1,000 (21.7%)
Discretionary Spending (Entertainment, Travel, etc.): $500 (10.9%)
Emergency Fund Contribution: $300 (6.5%)
Retirement Contributions: $300 (6.5%)

50/30/20 Rule

This comparison shows where his current spending is aligned with the rule and where adjustments could be made for more balanced financial management.

Analysis of the Current Budget vs. 50/30/20 Rule:

Needs (Housing, Debt, Living Expenses): Joaquin's current allocation is close to the 50% mark, but there may be room to optimize by reducing non-essential living expenses.
Wants (Discretionary Spending): Joaquin currently spends less on wants compared to the 30% guideline, which is a positive. He could choose to maintain this or gradually increase spending in a way that aligns with his lifestyle.
Savings/Investments: This area could be improved slightly to meet the 20% recommendation, though Joaquin is already making solid contributions toward his financial goals.

The idea of using moderation and understanding where your money goes is key. Knowing or having the information at your finger tips is half the battle, but changing one's habits is not easy. Small behavioral shifts, combined with discipline, gradually build the foundation you need to reach significant milestones, like buying a home. No one should want their quality of life or mental health to suffer. Although to each their own. [man saves over $39,000 pounds]

Given Joaquin’s current financial situation, it might be recommend he adjust his savings temporarily in favor of focusing on long-term growth. For instance, rather than aggressively saving for the immediate future, Joaquin could invest in learning a new skill or obtaining a certification that will improve his chances of landing a higher-paying job. This move could giving him a more robust financial foundation to achieve his goals. Additionally, he might consider a side gig to earn extra income without disrupting his primary job.

WHY? Working with a financial planner means more than just crunching numbers—it’s about having a guide to help navigate complex decisions. For example, a planner could help Joaquin weigh the pros and cons of additional education, a side gig or what financial instrument should his savings be placed in, ensuring that each step aligns with his broader goals and accelerates his path to success.

The truth is, there’s never a one-size-fits-all financial plan, and every situation requires a personalized approach. It’s crucial to discuss options with a financial professional to determine the most strategic actions to take. We can help you create a measurable, actionable plan just like with this hypothetical scenario with Joaquin. The important thing is to begin taking small, manageable steps, ensuring progress without overwhelming change.

Long-term benefits of working with BMG

Personalized strategies: tailored financial advice to your unique goals, like saving for a home, ensuring progress without overextending.
Accountability and guidance: Regular check-ins help you stay on track with his financial plan, while a BMG adjusts strategies as life changes.
Comprehensive view: insights into tax strategies, retirement planning, debt management, and investment advice, positioning you for long-term success beyond just his immediate goals.

Not having a financial plan could mean missing out on valuable opportunities to grow wealth. Whether it’s understanding how to invest wisely or planning for future expenses, professional advice can be the key to ensuring long-term success—even if you aren’t wealthy. After all, it doesn’t matter the size of the house—you wouldn’t start building one without a plan. The same applies to your financial future.

Are you ready to get Started?