Financial planning and budget are apparently complicated concepts,
but can become a true ally in the fight against excessive or reckless spending.
What to do?
1. Find a motivation!
Clearly set your medium or long-term priorities and what you would like to do with the money earned: attend a specialized course abroad or go on a holiday, send your children for studies, redecorate your house or even buy a new one, change your car, etc.
2. Identify all sources of income!
If you are employed, you receive a pay check every month. You can also take into account other sources: annual bonus, income from other activities, allowances, etc.
Tips & tricks: In case you receive your revenues in a BRD account, you can track the available amounts by checking your account with Internet banking, BRD-Net, SMS if you activated the SMS Banking service or even by phone with the MyBRD Contact service.
3. The most difficult moment: cost inventory!
Be as realistic and comprehensive as possible. To avoid missing anything, you can write down all the expenses you have identified. Here is an example:
- Basic expenses: food and personal care
- Other expenses for family members: transport, clothing, leisure, school, etc.
- Household expenses: utility bills, services charges, taxes, insurance, loan installments, etc.
- Car expenses: inspection, fuel, maintenance, insurance, etc.
- An emergency reserve (including a reserve for medical issues)
- Any other expenses: various installments to the bank, events with friends, etc.
4. A simple subtraction: income – expenses!
And you obtain the available amount. If the resulting amount is too low or negative, you can review the list of expenses to see where adjustments can be made.
Tips & tricks:
- If you have an Internet connection, you can give up some magazine subscriptions;
- If you go out for lunch on every lunch break, bring your home made food on 3 out of 5 working days.
- If you usually buy too much when you go shopping, do not leave home before you make a list.
- If you go to the cinema too often, consider also the possibility of renting a movie.
- If you tend to buy things under impulse, think twice to see whether that item is really useful.
Save the excess!
BRD recommends various savings solutions: from basic (savings accounts, term deposits) to investment alternatives (savings and credit programs or savings programs with a life insurance attached, pension funds, investment funds, etc.). And do not forget! You can revise your budget periodically: for instance, you can choose one day in a week to deal with this issue. Keep accurate records of daily expenses for optimization purposes.
In four simple steps, we can help you become an expert in financial planning!
Evaluate your budget here!