When clients sit down to talk about money, one of the most common disconnects is between what they think they spend and what they actually spend. This gap isn’t just inconvenient—it can completely derail financial recommendations if not addressed properly. In a recent Circle of Wealth® Roundtable members’ webinar, Matt Rzepka, CPA and executive coach for MoneyTrax, shared how he uses the Circle of Wealth®‘s Financial GPS and Spending Game tools to bridge this gap and bring clarity to the conversation.
The Lifestyle Illusion
Many clients confidently estimate their monthly expenses. But as Matt shared, “If you don’t have a process or system to prove it, it’s really hard to have that conversation.” He sees this all the time with high-income earners who believe they spend far less than they actually do. The problem? Making financial recommendations based on inaccurate assumptions sets the plan up for failure.
To avoid this, Matt leverages tools like QuickBooks Online Ledger to do basic household bookkeeping for clients. This allows him to generate accurate, cash-flow-based P&Ls that bring a client’s real financial picture into focus.
Visualizing Spending with Financial GPS
Financial GPS helps advisors visually show where every dollar goes, including taxes, savings, and lifestyle. It’s especially powerful when paired with tax calculation features recently added to the software. Matt emphasized that even before a client presentation, advisors should “play with the software” to explore how toggling options like standard vs. itemized deductions or W2 vs. self-employed income impacts the plan.
He explained how these features allow you to calculate an effective tax rate automatically and even model scenarios such as the sunset of the Tax Cuts and Jobs Act. These adjustments create a far more nuanced and realistic cash flow picture.
Proving the Number
Matt’s approach boils down to one principle: prove the number. If a client says they spend $7,500/month, he suggests a simple test: set aside any claimed surplus in a separate account and see if it actually accumulates. If they need to pull money back out, it’s clear their lifestyle costs more than they thought.
In his practice, Matt also applies the “Profit First” strategy to personal finances, allocating income into separate accounts for bills, discretionary spending, and surplus. This structure not only gives clarity but encourages disciplined cash flow behavior.
Why It Matters
Misunderstood cash flow is one of the biggest reasons financial strategies fail. By combining bookkeeping insights with visual modeling tools like Spending Game and Financial GPS, advisors can guide clients from uncertainty to clarity—and from assumptions to action.
As Matt put it: “You want to have equal risk and equal safe [assets]… and if you don’t know what your lifestyle costs today, it’s hard to prepare for the lifestyle you want in the future.”
Want to see these tools in action? Attend an upcoming Circle of Wealth® Discovery Webinar or schedule a private demo to explore how Financial GPS and Spending Game can elevate your client conversations.
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