Thursday, June 23, 2016

How to create a budget

Creating and keeping to a budget is one of the most important things you can do to help you toward reaching your financial goals.  At Bogetto & Associates, our financial planner team works with clients constantly to help them plan, save, and invest to work towards achieving the financial goals that they want to reach.  If you can create a budget that is both realistic and achievable, you can quickly identify how to put aside money towards your financial future.  Here are some ideas to help you create a budget:

Take a 6 month look at your spending


Start creating a budget by taking a look back at your spending over the past 6 months.  Questions you can ask yourself:

  • Was your spending the same each month?
  • If it was different, why?
    • Vacations?
    • Gifts?
    • Big Purchases?
    • Higher utilities?


Figure out what is a fixed expense vs a variable expense

  • Be honest with yourself!
  • Don't create a fictitious budget that you know you can't keep
  • Is it an expense that is truly needed, or just entertainment?

Decide what money is left over for saving

  •  If this number is zero, then it may be time to reassess your entertainment and "fun" expenses.
  • Decide on what is really important to you from these categories and trim down.
  • If you like to go out to eat for example, consider a "budget night" and eat in.
  • If you buy that fancy Latte every morning, consider the cost!


Have discipline - stick to the plan


Stick to your new budget and don't let old habits ruin your plan.  Once you have an "impulse buy", the floodgates can open for more reckless spending.  Re-consider the larger purchases such as a new designer handbag, the latest golf clubs, or upgrading your vehicle.  You can however program in rewards for your discipline...if you stay disciplined and stick to your budget and savings plan, the that double caramel macchiato will be that much more delicious knowing you earned it from your hard work!


Quick Tip 


If you find that you are someone who loves to spend money on nice things and never seem to have a handle on day to day finances, the consider reading "Stop acting Rich: and Start Living Like a Real Millionaire" by Thomas J. Stanley.  

Our financial professionals at Bogetto & Associates are here to help.  If we can offer advice or further suggestions on how to start a budget and associated savings or investing plan, give us a call!  We listen to our clients and can offer you many options to work towards achieving the financial goals that YOU want.

Financial Health...For Now & Tomorrow



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Telephone - 314-858-1602

10805 Sunset Office Drive, Ste. 202
St Louis, MO 63127

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Securities offered through First Heartland Capital, Inc. Member FINRA/SIPC
Bogetto Financial is not affiliated with First Heartland Capital, Inc.  

Bogetto & Associates does not provide legal or tax advice.  These topics are discussed in conjunction with your CPA, Tax Advisor and Attorney.

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Location: St. Louis, MO 63127, USA

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