Whether loose-fluffy, conscientious or anything in between, there are many ways to handle money. It’s not just about how important money is in general. Or how big the available funds are. Rather, it’s about determining which type you are at all.
The different types of money have their own worries and hardships and need to set different priorities in their private budget planning in order to get along well with their financial income.
For the three money types from our quiz, we have put together a few recommendations when it comes to private budgeting.
The “Minister of Finance”
The “Minister of Finance” is characterized by the fact that he always acts in a forward-looking manner and does not leave anything to chance in his own finances. Well-structured budget planning not only calms him down, but sometimes even gives him one or two exaltations – which, of course, the “finance minister” would never admit.
The “finance minister” often plans long in advance and has a solution for almost all problems. Or at least a loose “emergency plan”.
However, its great plus – the care and the exact planning – can also lurk a problem, because whoever is always on alert and tends to see more danger than chance, also misses one or the other opportunity to do something good.
It is not so much about a big purchase as a new car with special equipment (with or without car loan) or a really great holiday trip. The Minister of Finance has already made provisions for these expenses. Rather, the small and medium-sized extras that make life a little more liveable, always come up short.
Whether it has to be the latest smartphone, if it still does the old one, is an open question. Here everyone has their own preferences and ideas. But what about a really nice weekend trip to the more distant nature park? Here, the “Minister of Finance” not only thinks of the cost of entry and snack in between, but also of the travel costs.
Or what about the golf course, which has been on the wish list for so long? Here, the “Minister of Finance” not only fears the cost of the course, but also the prices of rackets, golf clothes, a possible club membership and the travel costs.
The family tip: With an even more precise financial planning and an even more exact examination of your financial budget, you probably do no favor. And just let it go easy, does not suit you and will probably only give you discomfort.
Rather, include a small extra monthly item for smaller expenses, with which you can treat yourself regularly. Put aside a small amount every month – just as you probably do for the heating, the washing machine and the car.
And if the golf course or extended weekend can not be paid immediately in cash, use the family calculator to calculate your options. The lending banks regularly underbid themselves with special offers and promotions and adjust their offers constantly, so that here is quite a bargain is possible.
The solid checker
The solid checker has a good overall view of his finances, and at the same time does not miss the chance to treat himself. There may be a bigger gap in the budget, but it will be closed soon enough – if necessary with an iron will to save. Real financial bottlenecks are the exception.
When planning a holiday, the solid checker, for example, manages to find a healthy mediocrity between “reward for the stressful everyday work” and “fun in moderation”.
On holiday itself, the credit card is drawn on a particularly beautiful evening, when it goes up in the restaurant. Subsequently, the solid checker, however, also renounced to compensate for the unplanned high expenditure again. He does not do this by iron saving at all corners and ends, but only in such a way that the vacation pleasures are not seriously clouded.
As a result, it is possible that the account (including the credit card) is clearly in the red after the return. Then, after returning to everyday life, the time has come for the solid Checker, however, to tighten the belt seriously, in order to come back with the household budget on a “black zero”.
Similarly, the solid Checker proceeds in other areas, such as buying a car, the financing of sports equipment or the weekend outing. When it comes down to it, it can be quiet quality at appropriate prices. The checker sees savings potential in the many little things in everyday life, which together make up a considerable sum.
The family tip: The solid checker does a lot of things right and certainly does a good job of maintaining its line. The balance between fun and abandonment proves him right.
What the checker should not lose sight of, however, is the need to regularly compare the different financing offers. This is true not only for the large purchases, but also for the little things that the Checker likes to pay for convenience with the Dispo. Here a small loan may be the better choice.
Simply relying on the house bank for financing is simply not enough, as the lending banks are constantly adjusting their bank loans and playing them off against each other – clearly in favor of consumers.
The family credit calculator shows that comparing regularly saves you money – which in turn can be used for a nice extra.
The notorious bankrupt vulture
In the notorious bankruptcy vulture, it is not necessarily the case that he basically has no money available or has no regular income. This is not his problem, but the imbalance between income and expenditure.
Although the notorious bankrupt has a constant feeling that income is not enough, with a larger income, the problem is unlikely to diminish: spending would increase accordingly, leaving an imbalance between revenues and expenditures.
The notorious bankrupt, therefore, has no choice but to cope with the financial resources available to him and to get a grip on private finances.
What keeps getting in the way is the neglect of necessary transactions, such as the payment of really urgent bills (which are even more expensive, for example, when dunning fees come on top) or even the use of house bank loans, even though the bankrupt is guessing that other banks have much cheaper deals.
A comparison is so easy – and takes only a few minutes to complete.
The family tip: The fact that the bankrupt vulture should keep an eye on the inputs and expenditures is probably not new to him. However, consumers who often “hang” at the dispensary – or even regularly – but who often do not know that there is a possibility of rescheduling. For example, convert the expensive credit line (overdraft facility) to a favorable installment loan! Significant savings are possible here – month by month.
What is a matter of course for the “Minister of Finance” may be new territory for the bankrupt vulture: the creation of an extra account for the many small regular and irregular expenses. So you not only keep track, but at the same time always have a financial cushion when, for example, a quarterly bill is in the house.
Set up an extra account (eg a savings account) and create monthly reserves for running costs such as the repair of the car, the quarterly bills for car insurance or club memberships. A few euros are sometimes enough here.
To set up an extra account and to equip it with standing orders only has to be done once – and has a lasting positive effect. So you not only keep the overview, but can always settle the expenses easily.