Have you finished your studies and been in the workforce for some time? However, are you still struggling to make ends meet at the end of the month? It’s time to think about the future and learn how to manage your money. So we offer some tips so you can do it with serenity.
Review your career options
Being financially stable means spending less than you earn. To do this, it is essential to manage your money well. However, your biggest source of income usually comes from your salary, so the reflection begins with an inventory of your professional career. For example, if you find yourself in a job that fills you intellectually but does not really fill your bank account, explore the possibilities in the job market: perhaps you will find an equivalent that will be better paid and will allow you to see coming on the long term
In the same way, nowadays it is more and more common to have a complementary income. In order to find out what type of secondary activity corresponds to you, define your areas of expertise: in which area of I have the most knowledge? What activity allows me to combine business with pleasure? Whether it’s creating handcrafted jewelry, creating a blog or renting your apartment, all means are good! In this way, you will have a second return of money that will allow you to create a small welcome capital in good time.
Track and list all your expenses
The budget involves estimating your expenses according to their nature. For example, you can start by tracing where your card has been used in recent months. How much do you spend on fuel per month? How much do you cost for your weekly shopping? How much do you estimate the amount allocated to your outings? What are your typical expenses? Then ask yourself the right questions: is it more profitable to take the bus? Can your consumption habits be improved? Wouldn’t it be interesting to replace all your bulbs with low energy light bulbs? It is by listing his expenses that we can at best manage his money, since we know later what to expect.
All these small savings on a daily basis will not only allow you to live better but above all you will be much less stressed by your financial situation.
Pay what you need!
In your budget, we also find the different types of debts that you still have to repay. Indeed, in 2016, the National Bank announced the census by the Central Credit to individuals of 6.26 million borrowers, which corresponds to 11,299,140 credits. So you are a large number in Belgium to have one or more loans to repay. In order to gain financial stability, we recommend that you first repay the loans with the highest rate. Any credit with a rate above 6.5% is also considered bad debt and must be repaid first. On the other hand, if you have subscribed to more than one loan and have trouble managing your debts, you can consider the option of credit redemption that allows you to consolidate your credits and decrease the amount of your monthly repayments (over a longer period however) .
The same applies to your credit card (s). Remember to pay the balance on time to avoid having to pay interest on your unpaid. In addition, using your credit card responsibly allows you to get a good credit rating over time, which will work in your favor if you ever want to take out a loan, for example to buy your first home. or apartment.
Start putting money aside
The best way to become financially stable is still to think long term. Indeed, the vagaries of life mean that you will always have unforeseen expenses: repairs on your car, replacement of your appliances due to wear …
If you do not have money in reserve, these hazards can hurt your monthly budget. So remember to open a savings account. So your money works for you, and you’ll be all the more proud to have set aside when you receive interest each year on what you’ve saved. Currently, the gross saving rate of households in Belgium is according to Eurostat around 9.7% for the year 2016. They spend almost 10% of their budget!
In addition, there will be a day when it will be time to leave the world of work to enjoy your retirement. In the case where you would have contributed on small wages, it is better to have a little money aside so you can always agree on a few small pleasures and live better in a general way. Managing your money well is also important to prepare for retirement!