Migros Bank Budget Sheet
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Migros Bank
A budget plan is an important tool for keeping your finances under control. Avoid the most common mistakes with our tips.
A well-thought-out budget helps you to keep your finances under control and put money aside for important things. Mistakes can easily creep in – these are the five most common:
Many people underestimate how much they actually spend. This leads to unrealistic expectations about how much money they have available.
Solution: You should record all of your income and expenditure over a few months. This can be used to calculate an average figure for a typical month. Migros Bank's budget sheet is a helpful tool for this.
Unexpected expenses such as medical bills and repair costs can place strain on your budget. An emergency reserve can help with this, but is often not big enough.
Solution: Individuals should have at least three months' worth of outgoings saved in a separate account. Families should have a larger amount saved. Ideally, you should have three savings accounts: one for minor emergencies such as broken household appliances, a second for taxes and insurance, and a third for occasional purchases.
When planning a budget, it is easy to forget some costs, such as annual subscriptions or membership fees, as well as travel and food costs.
Solution: If you want to avoid surprises, you should regularly check your budget for hidden or forgotten costs. Reminder notes help us to remember cancellation deadlines.
Personal circumstances are constantly changing, be it through a job change, a move, a new addition to the family or other personal events. Many forget to adjust their budget accordingly in light of such events.
Solution: Regularly reviewing and adjusting your budget ensures that it is in line with your personal situation and financial goals. You can gain a clearer picture here by obtaining comprehensive financial advice, for example from Migros Bank.
The new car or the kitchen renovation might be included in the budget, but is your pension plan or the costs of further education? If you only focus on short-term goals, you run the risk of neglecting larger life goals.
Solution: Good budget planning also takes long-term goals into account and identifies potential savings. Even regular, small contributions to pillar 3a or a fund savings plan can effectively help when it comes to saving for your retirement provision and asset accumulation.
Barbara Russo is a client advisor at Migros Bank.
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