We talk about “budgeting” on television. Because we don’t manage our money well and so we have to be more careful about what we have to spend and what we don’t have to spend. In addition, there is the realization that money that is not there cannot be picked from a tree called a “bank” or that this tree at least wants to get its precious leaves back (with some extra for lending).
On the one hand, it is true that we spend more than we have, it is not without reason that we have so many personal loans, revolving credits, credit cards and bank overdrafts. But the temptation is great if society promotes all these goodies and at the same time makes it easy to apply for loans. The temptation is great, very great.
A changing society that can hardly be stopped, because the 2009 crisis is not the only crisis we know. What can be done is to ensure that from childhood onwards, in lesson programs and from parents in a role model role, they are taught how to budget, to incorporate this automatically into daily affairs and to realize what you can and cannot do. have. Budgeting is not a lot of work, it is not difficult, but it has to be done. The problem lies in the fact that the example for many is that if you see something you apparently have to have it. After all, how many parents of young people exhibit the same behavior and follow their example? The teaching programs therefore involve more than just learning to use an accounting book and realizing that if you don’t have money you cannot spend it. Also not money that has been obtained or borrowed from someone else (parents, grandparents or the bank).
The bank does not have to be renounced, but the realization that a bank wants to see the money + interest back is important and this must therefore be anticipated. Will there be enough money to repay the loan + interest?
We also insure on a large scale in the Netherlands; no country has so much insured per capita. But the percentage that is over or double insured is also large. As if a higher insured amount in the event of damage always covers everything that is not the case. At the end of 2009, a report was published about the double insured person, containing shocking numbers of people who are double insured, ranging from an extra policy with the mortgage and also a separate policy (think of term life insurance or some kind of old age provision). But also people who had a new claims package through an advisor, but where the old insurance was never canceled. Now the advisor has a duty of care and must point out or help you cancel the old insurance policies, but there is no harm in being alert to what insurance policies are in force. This can amount to several hundred euros per year.
To get a good overview, it is important that you have a clear picture of everything. Set monthly and annual costs separately.
- So take all the stuff you have (even if it is not neatly organized) and go through it piece by piece. This way you ultimately get everything in focus. Name it correctly in the summary and include the amount it costs you.
- Start with insurance for the home, extra items, medical expenses, pension policies, etc.
- With a credit (overdraft loan, credit card), it is important to include the loan and the monthly repayment.
- Pay close attention to the costs of “everyday” fixed costs such as gas, electricity, water, cable, pollution tax, etc.
- A private home that includes an annual amount for maintenance of the home.
- The telephone landline, mobile and any internet subscriptions
- Sports or other recreational associations
- Pets? Any vet costs (and/or insurance)
- Costs of car, motorcycle, bicycle (depreciation, maintenance + fuel)
- We generally know the costs of the weekly shopping, but items are also purchased in between. Those are also costs.
- A hairdresser, beautician, sauna visit, etc.
- In addition, there is income and this can vary from salary, to benefits, to alimony or child benefit.
- Separately list the holiday pay and any end-of-year bonus and also include any tax refund (even if it is paid out monthly).
This gives you a summary of the monthly recurring costs, the annual recurring costs and the same applies to income. This makes it a little easier to know what your minimum monthly needs are and what you still have to pay once a year.
Is budgeting useful or necessary? To get an idea of it, it is a good idea to go through the exercise once, so that you know what goes through your hands on a monthly basis. The realization that you cannot do some things immediately but have to save for them becomes clearer. That you have to live by it is the next step, which is sometimes difficult for a loner with all the tempting things the market offers, but when the realization comes, it is included in training and we learn to move away from only materialistic things. , then a big step has been taken.