Hello Reader,

This time of year, one of the main things I’m doing with clients is reviewing last year’s numbers — and then making a rough estimate of income for the year ahead.

And it’s a good reminder of something simple but important.

When people think about financial planning, they often imagine sophisticated strategies, advanced investing knowledge, or financial “magic.”

Some of that can help.

But real progress starts with the basics.

It starts with understanding your income.

If you’re a W-2 employee, that’s usually straightforward.

If you’re self-employed, own a practice, or run a business — it’s often anything but.

That’s why I encourage people, especially early in the year, to do just one thing:

Not perfect.

Not precise.

Just a best guess.

That estimate becomes the foundation for everything else — taxes, saving, investing, spending, and longer-term planning.

How you do this depends on where you are:

• Multiple businesses? Review last year’s P&Ls and add them up.
• Solo practice? Pull a revenue report from your EHR and start there.
• Already pretty dialed in? See what you could refine or clarify.

The goal isn’t a perfect plan.

It’s simply more clarity than you had before.

Once you start, the next steps tend to reveal themselves — often in the form of questions. And that’s okay.

As I was recently reminded:

you can’t fail at learning or discovering.

So here’s the invitation:

Spend five minutes making a best guess.

Open the easiest report.

Take the path of least resistance.

Write something down.

That’s enough for today.

And if you get stuck or aren’t sure what comes next, feel free to hit reply and let me know. That’s part of why this newsletter exists.

Best,
Dave