Tailored Wealth

Strategic Financial Planning

How To Enjoy Life Now Without Screwing Over Your Future (Spending vs. Saving)

Episode TL;DR

You don’t have to choose between enjoying life now and protecting your future. In this episode, Dan Pascone shows you how to balance spending and saving using a simple 70-20-10 rule and five practical strategies, so you can live well today without sabotaging tomorrow.

You’ll learn how to build a values-based spending plan, automate your future first, and create guardrails that let you say “yes” to what matters most—without guilt, guesswork, or financial chaos.

Key Takeaways

  • Most high earners live in a tug-of-war between “YOLO” and hyper-frugality. Overspending feels fun but leads to anxiety; over-saving feels responsible but can make you feel like you’re postponing your whole life.
  • The 70-20-10 rule gives you a simple, values-driven framework. Roughly 70% of your income goes to living today, 20% goes to building future freedom (savings, investing, debt payoff), and 10% goes to generosity or growth.
  • Clarity beats willpower. Starting with a clear baseline—income, fixed expenses, and actual spending—helps you see where money is leaking and where you can redirect cash toward goals.
  • Automation turns good intentions into actual progress. Paying your future self first via automatic transfers to retirement accounts, brokerage accounts, and emergency savings removes guilt and mental load.
  • Spending should reflect your values, not social media. Spend extravagantly on the few things that truly matter to you and cut ruthlessly on the things that don’t, so your lifestyle and plan both feel aligned.
  • Guardrails and visualization keep you on track through life changes. Pre-set “splurge” and travel budgets plus a vivid picture of your future self help you stick with the system when markets, careers, and priorities evolve.

Key Moments

  • 00:00 – The spending vs. saving dilemma: Why every financial decision feels like a battle between guilt and FOMO.
  • 00:25 – Who this video is for: Dan introduces Tailored Wealth and the core question he hears from executives and business owners.
  • 00:46 – The extremes: YOLO vs. aggressive saving: How social media and financial media push opposite, unsustainable narratives.
  • 01:30 – The 70-20-10 rule explained: A simple framework for allocating money to living, building, and generosity or growth.
  • 01:56 – Strategy #1: Set a baseline. Why you need a full picture of income, expenses, and savings, plus the 50-30-20 and zero-based approaches.
  • 03:24 – Strategy #2: Automate your future first. How to pay your future self before lifestyle expands.
  • 03:48 – Strategy #3: Value-based spending. Spend more on what fuels you, less on what doesn’t.
  • 04:09 – Strategy #4: Guardrails, not restrictions. Using earmarked travel, splurge, and hobby funds to enjoy life without guilt.
  • 04:48 – Strategy #5: Visualization. Aligning your present money choices with your future self’s life and freedom.
  • 05:09 – Beyond balance: Why you need a system that adapts through market changes, career moves, and big life events.

Episode Summary

In this episode, Dan Pascone speaks directly to high-earning professionals who feel caught between enjoying their money now and protecting their future. He names the familiar tug-of-war: splurge on the Italy trip or max out the Roth IRA, buy the dream car or invest the difference. Social media preaches “YOLO” while financial media preaches extreme frugality—and most people bounce between the two, overspending without a plan, then overcorrecting and hoarding cash, only to feel just as stressed.

Dan introduces a middle path: the 70-20-10 rule. Roughly 70% of your money supports your current lifestyle, 20% builds your future (through saving, investing, and debt repayment), and 10% is devoted to generosity or personal growth. On top of that framework, he lays out five practical strategies. First, set a baseline and actually track where money is going, using tools or simple spreadsheets. Second, automate your future first so savings and investing happen before lifestyle creep. Third, use value-based spending so you can invest heavily in what genuinely matters—like time with family—while cutting hard on the rest.

Finally, Dan shows how to create guardrails instead of harsh restrictions, setting clear budgets for travel, hobbies, and splurges so you can enjoy them guilt-free. He closes with a visualization exercise that connects your present self to your future lifestyle, helping you see money as a tool—not a source of constant stress. The result is a repeatable system that lets you live well today, protect tomorrow, and adapt as markets, careers, and life evolve.

Full Episode Transcript

DAN: You’ve worked hard to earn money, so why does every financial decision feel like a battle? Spend and feel guilty, or save and feel like you’re putting life on hold? If you keep swinging between those extremes, you risk ending up with no freedom today and no security tomorrow. In this video, you’ll learn a smarter balance between spending and saving so you can enjoy life now and build the future you want.

DAN: Now, let’s get right into it. I’m Dan Pasone and I’m the founder of Tailored Wealth and we help executives and business owners to design financial strategies that align with their lifestyle and long-term freedom. And one of the most common questions I get is, “How can I spend money and enjoy life without jeopardizing my future?” Everywhere you turn, there’s a financial tug-of-war.

DAN: Splurge on the family trip to Italy or put money in the Roth IRA. Buy the dream car or stay practical and invest the difference. Social media pushes YOLO, live now, spend big. While the financial media pushes the opposite, live on as little as you can, save aggressively, and retire early. Both extremes create pressure. Spend too freely and you wake up anxious about the future.

DAN: Save too aggressively, and you end up wondering what happened to the best years of your life. Most people bounce between the two. They overspend without a plan, then overcorrect and start hoarding money and still don’t feel any freer. But here’s the truth. You don’t have to choose one extreme or the other. You can live well today and set yourself up for tomorrow.

DAN: That’s the heart of the 70-20-10 rule. A simple, values-driven framework to balance lifestyle, future security, and giving. Seventy percent for living, twenty percent for building, and ten percent for generosity or growth. This is your foundation. Now, let’s build on it with five strategies that you can start today.

DAN: Strategy one is set a baseline because you can’t optimize what you don’t understand. Start by knowing your full financial picture—your income, your fixed expenses, your current savings rate. Most high earners think they have a handle on their finances until they actually track it and see where there’s money leaking out. Use a tool like YNAB, financial planning software through an advisor, or even a custom spreadsheet.

DAN: Clarity creates confidence. And if you’re not sure how to budget, here’s two options. The 50-30-20 method: put 50% of your after-tax income towards your needs like housing, utilities, insurance; 30% towards wants like travel, dining, and entertainment; and 20% towards savings, investing, or paying down debt.

DAN: It’s straightforward and flexible, perfect for busy people who want guardrails without micromanaging every dollar. The second method is called zero-based budgeting where every dollar is assigned to a job, whether it’s paying bills, funding investments, or padding an emergency fund, until nothing is left unassigned. It forces you to be really intentional and can help you uncover cash flow you didn’t realize you had.

DAN: But the best system is the one that you actually stick to.

DAN: Strategy number two is automate your future first. The single most powerful shift is to automate your savings and investing before you spend—not what’s left over, but what comes first. Set automatic transfers to your 401(k), Roth IRA, brokerage account, and emergency fund.

DAN: Because automation turns intention into action, and it removes guilt from the equation. This is how high earners protect their future freedom without having to think about it every month.

DAN: Strategy number three is use value-based spending. Not all spending is equal. Some expenses drain you while others fuel you. Takeout five times a week because you don’t want to cook? Probably not bringing lasting value.

DAN: But a weekend away with your spouse after a demanding quarter—that might be exactly what keeps your marriage strong. So here’s the principle: spend extravagantly on what brings you joy and meaning, and cut ruthlessly on what doesn’t. Let your money reflect your values, not someone else’s Instagram highlight reel.

DAN: Strategy number four is create guardrails, not restrictions. Most people think budgeting means saying no, but smart financial planning means building boundaries that protect your yes. Create a fun or splurge budget. Set a target for annual travel. Build in margin for hobbies, events, or experiences with your kids.

DAN: Because when you’ve planned for it, you can enjoy it guilt-free. Budgets shouldn’t feel like punishment. They should feel like freedom within structure.

DAN: Strategy number five is use visualization. Here’s a powerful exercise. Picture your future self. Where are you living? How much flexibility do you have in your schedule? What does your day look like? Now, picture what your present self is doing with money.

DAN: Would your future self thank you? Visualization connects current actions to long-term outcomes. And when your present and future are in alignment, your money becomes a tool, not a source of stress.

DAN: So that’s how you can spend and save without guilt—living well now while still securing your future. But even once you’ve built this balance, there’s always the next question.

DAN: How do you keep it going through market changes, career shifts, or big life events? That’s where real financial independence comes in. Not as a one-time goal, but as a system that adapts with you. Click the link below to keep living a life that you don’t need a vacation from. And if you want more clarity, confidence, and control over your financial future, hit subscribe and I’ll see you in the next one.

Resources & Citations

Frequently Asked Questions

How do I know if I’m saving “enough” versus enjoying life today?

There isn’t a single magic percentage that works for everyone. A better approach is to start with your current reality—income, spending, savings—and then use a framework like 70-20-10 as a starting point. From there, you can adjust the percentages based on your goals, time horizon, and how close you are to financial independence. The key is that your savings rate should be intentional and tied to a plan, not whatever happens to be left at the end of each month.

What if my lifestyle already takes more than 70% of my income?

That’s common for high earners whose spending has grown over time. Rather than trying to cut everything at once, Dan’s approach is to find the least painful cuts first and redirect those dollars to your “building” bucket. Often, a combination of cancelling low-value subscriptions, tightening everyday spending, and setting clearer travel or splurge limits can free up meaningful cash without making life feel small.

Is the 70-20-10 rule better than the 50-30-20 budget?

Neither rule is “better” in a universal sense—they’re just different lenses. The 50-30-20 rule is a classic way to think about needs, wants, and savings. The 70-20-10 rule Dan uses focuses more explicitly on lifestyle, future building, and generosity or growth. What matters most is choosing a simple structure that fits your life and sticking with it long enough to see progress.

How can I automate my finances without feeling like I’m losing control?

Automation doesn’t mean ignoring your money; it means pre-deciding the important stuff so you don’t have to wrestle with it every month. You can start small: automate a fixed dollar amount into savings or investments on payday, and review your system quarterly. Over time, you’ll likely find that automation reduces stress because the essentials are handled, and you’re still free to adjust as your goals evolve.

What does “value-based spending” look like in practice for busy executives?

Value-based spending means aligning your money with what you actually care about, not what others think you should. For many executives, that might mean spending more on time leverage (household help, childcare, travel that reconnects you) and less on status purchases that don’t really move the needle on happiness. A simple way to start is to list your top 3–5 priorities for the next year and check whether your recent spending lines up with them.

How do I keep my plan on track when my income is irregular or tied to bonuses?

When income is variable, the system matters even more. You can set a baseline plan on your minimum reliable income, then create rules for what happens to each bonus or windfall—for example, 50% to future building, 30% to lifestyle upgrades or experiences, and 20% to giving or growth. That way, you enjoy the upside when it comes, but you’re also consistently moving toward long-term freedom.

Disclaimer

The information in this video and on this page is for educational and informational purposes only and is not intended as, and should not be construed as, individualized tax, legal, or investment advice. Any strategies discussed may not be appropriate for every viewer and are subject to your personal circumstances, cash flow, risk tolerance, and goals.

Before making any changes to your spending, saving, or investment strategy, you should consult with your own qualified financial professional, tax advisor, and, where appropriate, legal counsel.

Related Episodes & Resources

Next Steps

If you’re tired of bouncing between “live it up now” and “save every dollar,” this is the moment to put a real system behind your money.

  • Design your version of the 70-20-10 rule: Visit Tailored Wealth to see how Life-Driven Planning can help you align your cash flow, investments, and long-term freedom.
  • Stay sharp as life changes: Subscribe to Making Sense of Your Money for ongoing tools and episodes on spending, saving, and building a life you don’t need a vacation from.
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