Step 1 - Earning, Spending and Looking Ahead

Last updated:
September 16, 2021

Step 1 in the 7 Steps to Financial Independence starts at the very beginning, where we help you build a foundation and understand your earning and spending patterns. 

During onboarding, BodesWell will prompt you to enter your estimated income and expenses. These are intended to be ballpark figures that we use to start building the foundation of your plan. 

The easiest and most automatic way of understanding your income and spending patterns is to link your accounts at different financial institutions to BodesWell. You can do so by clicking the “adjust your financial profile” button in the left navigation bar, and then selecting “add account”. Syncing your bank accounts helps you paint a complete picture of your income and expenses, and allows us to better suggest next steps for you. It also allows for increased accuracy of your plan. 

Note that when you connect your financial institutions, not only do we analyze your current income sources, expenses per category, investment returns and debt payments, we are also able to automatically update this information going forward. This means that when you log in to BodesWell you will no longer have to manually update information when your financial situations change. In the case of a disconnected financial institution, we will alert you to take action to reconnect your accounts.

After obtaining your up-to-date income and expenses, we use our models to estimate your future earning potential and spending patterns. If your spending levels are projected to be higher than your income levels, we highlight those specific time periods and offer suggestions to help you address those potential situations. You’ll have the option to examine several goals and decide on the one that is the most appropriate given your situation. 

At the end of Step 1, you should understand your earning and spending patterns with greater clarity. After this foundational step, you will be able to move to Step 2 - Building an Emergency Fund.

Move onto Step 2 - Building an Emergency Fund

Back to Overview of 7 Steps to Financial Independence