General Spending & Budgets

When projecting a client’s current budget forwards, it’s important to consider that spending habits typically change over time. Young people may be restricted by lower income at the beginning of their careers, and spending often tracks upwards as income increases, particularly where a family unit grows to include children. Equally, spending will often decrease throughout retirement as lifestyles change. Planolitix allows for ‘spending adjustments’ to create a more realistic long-term model.

Planned Expenses

Planolitix includes the ability to track other expenses that, while an important part of overall planning, are often missed in a day-to-day budget. Things like replacing cars, or big overseas holidays, can be a significant cost across a lifetime, so it’s important to model the impact of these in the lifetime cashflows.

Additionally, children’s costs are calculated separately as these typically change over time, dropping out completely as they become independent. The modules allow for these costs to be set up individually for each child with progressive changes as they get older.

QUICK-TIP: If a client has never had a budget before, start with how much they aren’t spending and work backwards. The estimated budget allows for a quick insight with very little data entry when working in front a client, but still retain the ability to build out a more detailed budget when appropriate.