Knowing how to manage your budget well is of paramount importance. And yet, 60% of the French exceed their discoveries at least once a year. However, there are simple and easy to implement rules to stay in the nails.
WHY MANAGE YOUR BUDGET IS VERY IMPORTANT
Good management will avoid you in the first place of recurring overdrafts. If we think naturally of the agios they imply and therefore at additional costs, limit its overdrafts and, ideally, not having any more at all also participates in establishing a relationship of trust with your banker, which may be particularly important in time to take out a loan for example. Whether it’s a consumer credit or a home equity loan, before agreeing to a loan, your bank will look at whether you are reliable and the issue of overdrafts plays into the balance.
Mastering your savings
Good budget management has two components. In fact, managing your budget well means controlling your expenses but also controlling your savings. If you manage your budget well, it will be easier and more painless to save.
Treat yourself to little pleasures without feeling guilty
Good control of its budget also allows having fun. It’s not just about tightening your belt, but planning and controlling your expenses. Being able to go for a weekend on a whim because we can not stand it or crack it in front of a new pair of shoes or the last connected watch, it’s better when we know we can do it without passing in the red and having to explain to his banker!
THE 3 COMMANDMENTS OF GOOD BUDGET MANAGEMENT
Organize your budget
In order to organize your budget, the first thing you need to do is determine your “rest to live”. This is money available after subtracting your expenses from your income. To calculate it, do not forget any element in terms of revenues or expenses.
Your income consists of your salary and bonuses if you are employed, your fees, remuneration, etc. if you are independent. To this is added public aid (family allowances for example) as well as income from your wealth and / or capital (rents, dividends, interest, etc.).
Expenses are the sum of all current expenses (rent, loan (s), electricity, water, phone and internet subscriptions, food, gas, clothing, leisure, etc.).
After calculation, if your expenses are higher than your income, you have several options: reduce your expenses, increase your income or choose a combination of both.
If, on the other hand, your income is greater than your expenses, there are also several options: spend more, save more, or choose a combination of both.
Adopt a balanced distribution
A controlled budget is built with a balanced distribution of the various items of expenditure. We propose as an example a distribution to adjust according to your income and needs (but not too much anyway).
We will, therefore, devote approximately:
- 45% of its budget to fixed expenses (housing, electricity, multimedia subscriptions, transport, taxes, insurance)
- 30% to variable expenses (clothing, health, food, gifts)
- 15% savings
- 10% for hobbies and favorites (holidays, outings, raids at Apple or in department stores).
Anticipate your expenses
Finally, the last secret for a controlled budget, plan in advance your big purchases. But do not forget to always keep the margin to cope with big unforeseen purchases. You are never safe from a water heater that lets you go. Plan a margin by saving on a support such as bank books that will allow you to take the blows with money available right away.
TOOLS TO MANAGE YOUR BUDGET
The tools made available by your bank
To help you control your budget, banks (traditional as online banks ) often put tools at your disposal from their apps and / or websites with the categorization of expenses, history, statement of accounts, etc.
For example, Boursorama Banque offers its customers via its bank account aggregator the management of all your accounts, whether they are domiciled at Boursorama or not.