The Key to Financial Wellness: Creating A Budget | Chase McCormick
By Chase McCormick
Financial wellness is real. And lately, when talking to clients, I've begun to refer to myself as a financial wellness coach. The reason I initially wanted to become a financial advisor is because my former advisor helped me go from feeling anxious every time I swiped my card, to feeling stress-free knowing I had a plan in place. My goal has always been to do the same for my clients. Because as their financial wellness coach, I want them to feel good about every purchase.
To me, wellness is a mix of what makes us feel both happy and efficient. Whether it's time or money, the problematic paradox is that spending on the things that make us happy often leave us feeling inefficient, and the things that make us feel efficient often come at the cost of happiness. Since both our time and money are limited, the only way to maximize both is with a definitive plan. Because if you don't plan out how you will spend your time and money, the result is often waste.
My advice: allocate portions of your time and money toward what makes you both happy and efficient. That's the key to enjoying both guilt free.
The time budget
As I've grown older and taken on more responsibility, keeping a daily schedule has become more and more important. In my three years post-grad, I've gone from hourly sections in my calendar (Social Media Coordinator), to 30-minute sections (Social Media and Events Specialist), to now 15-minute or less sections (Financial Advisor). However, recently I've taken it a step further: I've begun sectioning off my free time too, to be more efficient with my nights and weekends.
This year, I've waged a war with my phone. It's truly painful to realize you've spent hours scrolling reels on a sunny seventy-degree Saturday in Santa Monica, especially when you live a block from the beach. I've deleted apps, turned my phone black and white, and started using the popular screen time limiter Brick (congratulations to me for hitting 1,000 hours this year). But going cold turkey doesn't totally work. Our generation uses social media to communicate with each other, and skipping a day can mean missing plans, life updates, and the cultural moments nobody wants to miss out on.
So each week I create a time budget: I figure out how many free hours I have and how I want to use them. (Think of it as a financial advisor's approach to reverse engineering a schedule.) First comes what's necessary to function at full speed: a minimum amount of sleep, exercise, and hours in the office each day. Then I allocate time for what will help me grow: studying for my next licensing exam, reading books recommended by my mentors, and keeping up with daily news and market trends. That sometimes means weekend work or a late nights at the office, but with proper budgeting I don't need to do it every day. Finally, I section off what I want to do for fun: nights out, trips to the beach, and even time to waste scrolling on social media.
What I've found is that I now feel far less guilty about wasting my time. I can enjoy a careless night out with friends or an hour of doom scrolling, knowing I've also given proper portions of my time to my other goals and healthy habits. I can spend a Saturday in the office knowing Sunday is mine to enjoy with friends. I can waste my time in peace. I can lock in knowing there's fun ahead. And it's never felt better.
Your money deserves the same plan
Time is only half of the equation. Your money is just as limited, and it follows the same rules: without a plan, it quietly goes to waste. A financial budget is simply a time budget for your dollars.
The structure is nearly identical. My time budget starts with what I need to function, then what helps me grow, then what I do for fun. A financial budget does the same: needs first, then savings and debt payments that build your future, then money set aside for fun. The people I work with who feel best about their finances are rarely the ones who spend the least. They are the ones who decided ahead of time where their money goes.
Spend on what you enjoy, without the guilt
Just like an hour of planned scrolling, a planned purchase comes without the guilt. When your bills are paid and your savings are set aside, the concert ticket, the weekend trip, or the new sneakers is money you planned to spend. Without a plan, the same purchase comes with a side of worry: should I have saved that, can I afford it, am I falling behind?
That's why we plan for careless spending instead of pretending it won't happen. A good budget doesn't eliminate the treats you don't need but love. It gives them a bucket of their own. When the bucket has money in it, spend freely. When it's empty, you're done until next month, and you never had to dip into savings to find out.
A simple place to start: the 50/30/20 rule
The 50/30/20 rule is an easy framework for your first budget. It splits your after-tax income into three buckets:
50% for needs: rent or mortgage, utilities, groceries, transportation, insurance, and minimum debt payments.
30% for wants: dining out, travel, shopping, subscriptions, entertainment, and hobbies.
20% for savings and debts: emergency fund, retirement and investment contributions, and paying down debt beyond the minimums.
Here is what it could look like on a hypothetical $4,000 monthly take-home pay:
NEEDS
Share: 50%
Monthly Amount: $2,000
What it Covers: Rent, utilities, groceries, transportation, insurance
WANTS
Share: 30%
Monthly Amount: $1,200
What it Covers: Dining out, travel, shopping, subscriptions
SAVINGS AND DEBTS
Share: 20%
Monthly Amount: $800
What it Covers: Emergency fund, retirement, extra debt payments
That $1,200 wants bucket is real money you're allowed to enjoy. Because the 20% has already gone to your future, you can spend the 30% without second-guessing it.
The percentages are a starting point, not a rule. If your needs run closer to 60% in an expensive city, trim the wants bucket or work on raising your income. What matters is that every dollar has a job.
Getting started this week
You don't need a perfect system to begin. Three steps are enough:
Find your take-home pay. Use the amount that lands in your account after taxes and payroll deductions.
Sort last month's spending into the three buckets. Your bank and card statements will show you where the money went. Expect a few surprises.
Automate the 20%. Set up automatic transfers to savings and debt payments on payday, so the money is gone before you can spend it.
Take the next step
Financial wellness is not about perfection. It is about knowing your money is working for you, so you can enjoy your life today and feel confident about tomorrow.
If you'd like help building a budget that fits your life, reach out to me, Chase McCormick, at Gerber Kawasaki. I'll send you our Financial Survival Guide for Young Professionals, a practical resource to help you take control of your money.
Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California and is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration requirements. Additional information about the firm is available on the SEC’s Investment Adviser Public Disclosure website at adviserinfo.sec.gov.
Chase McCormick is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$4.78B billion in assets under management and assets under advisement as of 06/30/26. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This material is for general information only and is not intended to provide specific tax or investment advice. Consult your tax professional regarding your individual situation. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."
