Do you know what your Burn Rate is? This simple calculation will help keep your spending in check. Watch this short video to learn how tracking your personal expenses can keep your retirement from going up in flames.
Do you know what you’re spending? Not a rough estimate. I’m talking about every dollar and cent.
If you want an accurate picture of your financial health, the first step is measuring what you spend. Not just once, but on a regular basis. At Dentist Advisors, we call this your Burn Rate.
Your Burn Rate is the percentage of your total income that goes toward your personal spending. Knowing this number can help you keep your spending in check, identify financial opportunities, and optimize your savings and investments. For example, most of your personal costs should remain fixed. You shouldn’t spend more just because you make more. Reasonable increases to spending are normal, but you have to keep an eye on things.
Adopting philosophies like this will pay off in the long run; if you can make small adjustments to your spending patterns and put the excess money into your investments, you’ll accumulate more wealth and be able to retire more securely.
Do you know your Burn Rate? When was the last time you assessed your personal spending habits? Call Dentist Advisors and we’ll give you free, personalized advice about how you can spend less, save more, and retire sooner.