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Budget Basics 101

April 3rd 2018 - Amanda Huinink

Spring is in the air and with that comes a bit of spring cleaning.  Hopefully that cleaning spree includes not only tackling your garage, closets and pantry but also your finances!  We are here to help you achieve your financial goals with just the basics to get you started.  Financial planning does not have to be complicated.  It does however require you to put a little leg work in on your end.  Whether that be researching online or talking to a financial planner or representative, no one is going to put money into your retirement plan for you.  Well, not unless you are very lucky!


Here are some budgeting basics to help you scale down your spending and leave you with more money each month for savings.

Look through your monthly statements.  Track all the different types of expenses and add them up over a few months.  You can break up your statement into the following categories:

-        Fixed expenses: payments that remain the same month after month, that cannot be changed (insurance, mortgage, loan payments etc.)

-        Flexible expenses: expenses that may change month to month such as utilities including water, heat and hydro.

-        Add up your fixed and flexible expenses for your total expense amount for each month.

-        Figure out your total monthly income.

-        The difference in these two numbers is your monthly disposable income. This is where you may want to consider making some big changes by increasing your savings amount per month and decreasing your spending amount.

Once you have broken down your monthly expenses, make an appointment or call a financial advisor to come up with a plan to get your savings started and to get rid of debt fast.  They will work with you to create a plan that allowing you to pay down debt, save and also enjoy life!