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Transcript
00:00So figure out what you're spending now.
00:02Don't necessarily project up and start, what did I spend last year?
00:06We've talked about it on the show before.
00:08Take credit card statements, take bank statements.
00:10What literally went out the door?
00:12All right, hard to argue that that's what you spent last year.
00:15And then I think that we should take and go, let's assume that that's the base for spending going forward,
00:20especially as you're close to retirement.
00:22If you're 20 years away, it's a little bit harder to predict.
00:24There's some more variables.
00:25I'm five years away.
00:27You go, all right, what I'm spending now is likely what we're going to spend in the future,
00:30which is a different tactic than many people in the financial world take,
00:34where they say, well, let's assume that you spend 80% of your current income or something like that.
00:39And use it based on your income.
00:41And I go, listen, let's talk about spending because that's tangible.
00:43It's real.
00:44We can figure out what you spent last year and just start with that and say, listen,
00:48the baseline is let's assume that we're going to spend tomorrow what you spent yesterday.
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