How do I set a loan budget?
You need to set a budget to control your finances. With a budget, you can see how much money you need each month and how much you can borrow.
You need to set a budget to control your finances. With a budget, you can see how much money you need each month and how much you can borrow. You can also see if you might be able to cut down on some areas and even save money. You can use SIFO’s (National Institute of Consumer Research) reference budget for an approximate budget for you and your family at sifo website and keep this up with your income.
You must remember to add housing and electricity costs, since these are not included in SIFO’s budget. SIFO’s budget includes expenses at a reasonable level of consumption, but does not cover holiday trips, expensive leisure activities and nightlife, so whether you are a student and a lot on the town, or a seasoned ski equipment enthusiast, you must remember to add this as well.
A realistic budget
It pays to be realistic and remember all the expenses, even though you may find it a little embarrassing to spend so much money on clothes. All budgets are individual, and you get the most accurate budget by accounting for your consumption over time and using that as a starting point. If you have never done this before, one approximate budget is good to spend.
Save receipts and print out your bank account, then you can see how much money goes into it and how much money you can set aside to repay your loan. If you have an online bank, your bank often has a free budget template that you can use to get an overview of your finances.
Once you have seen how much money you can set aside to repay your loan, you can calculate how much loan you have the opportunity to take.
On the finance portal you can calculate how much you can borrow by typing in the installment amount, ie how much you can afford to pay each month, plus the effective interest rate on the loan and how long the loan runs over, ie how much time you have to spend pay back the loan. Then you get the total loan amount, which fits into your exact finances.