Optimal Finance Daily · Wednesday, August 26, 2026
Joshua Becker outlines a simple, yet effective, method for creating a personal spending plan. The process involves determining monthly net income, identifying fixed monthly costs, and then calculating the remaining discretionary income available for spending.
“To get started, determine your monthly take home pay. Not your gross income before taxes, but your net income. The actual amount on your check or direct deposit.”
“Second, sit down and determine your monthly fixed costs. These are the expenses you currently have in your life that require some of your income every month, no questions asked.”
“After you have determined your monthly income and your monthly fixed costs, you can easily recognize your monthly discretionary income. The money that you have left over to spend as you desire.”