I manage my budget
Do you sometimes end the month in the red? Managing your budget is a priority for any responsible person.
It is clear that the cost of living increases each year and the purchasing power of households tends to decrease. Managing your budget can then become a challenging task.
However, if you want to take out a loan, managing your budget will be the first priority because our brokers will start by analyzing the ratio between your income and your monthly and annual expenses. Only if this ratio does not exceed 50% will you be able to take out a loan.
I organize…
Managing your budget
A vast program, if only one of our mini-guides should remain, it would probably be this one. Indeed, how can you benefit from a loan and especially manage to pay it off without difficulty, if your budget is poorly managed.
So be responsible and don’t bite off more than you can chew. The quality of your life depends more on the balance of your monthly and annual budgets than on having the latest trendy TV…
What is a balanced budget?
Managing your budget responsibly means that the total of your expenses including taxes and all your extraordinary charges (provisions for expenses such as illness, replacement of worn-out items, gifts for children) does not exceed your net income and even leaves a surplus for savings.
It is estimated that it is not unreasonable to aim to keep a positive balance of 15 to 20% of your net income in your bank account to feed your savings. Thus, if your net income is €1,450.00, you should be able to keep between €217 and €290 in your bank account at the end of the month. Remember that your savings will allow you to cope with any unexpected setbacks. It doesn’t only happen to others…
Practical tips
- Make two summary tables (one monthly and the other annual) and list all your expenses in one column and all your income in the other column (unfortunately, there will be fewer lines in the “expenses” column).
- Don’t forget to set aside a portion of the annual expenses in the monthly table.
- Don’t cheat, be honest with yourself…
- Check your bank statements or Home Bank every week and force yourself to stick to your budget.
- Remember to save between 15 and 20% of your net income.
That’s it, you have decided to manage your budget responsibly? CPE now guides you in choosing your loan. Simply enter the amount you need, and let yourself be guided!