Tips & tricks - 30 06 20 Budget Planning in 5 simple steps

budget planning

Do you have trouble organizing your financial administration? Wondering how to start with budget planning?

Before you start with this assignment you need to set clear goals. Here are a few examples:

  • Do you want an insight into your spending?
  • Do you want to save money in an easy way?
  • Do you want to have money left over at the end of the month?
  • Do you want more control over your finances?

Read more about how you can achieve these goals in 5 simple steps.

Step 1: Collect your documents

Drawing of a woman at digital filing cabinet

Start collecting all your documents, invoices, warranty certificates, you name it. You can do this the old-fashioned way by putting all these documents in a folder and writing down the costs in your household booklet. If you can sort all your documents by theme at this stage, you're already one step ahead. 

Don't you feel like doing all this manually and keeping everything on paper? Then a digital tool such as ROOV can help you. Our highly secure digital archive helps you keep all your administration in an orderly way, just take a picture of each document. Our smart search function analyses the words on the photos of your documents so that you can find them in no time. No more hours of searching for documents!

Step 2: Create a clear overview of your costs

An important step in budgeting is categorizing your expenses and documents. This can give you an idea of how much you spend in each cost category you create. Figures from Statbel show that an average family in Flanders spends 30% of its income on housing. Do you know if this is also the case for you? What if we talk about transport or food? 

Top 5 average expenses:

  1. Housing, water, electricity, gas and other fuels (29,6%)
  2. Food and non-alcoholic beverages (13,9%)
  3. Transport (11,1%)
  4. Personal care and services (10,5%)
  5. Culture and leisure (7,6%)

Source: Statbel

How do you score compared to the average Fleming?

Drawing of a woman looking at an overview of her costs

To find out, you need a clear overview of all your expenses. Find out for yourself what your fixed and variable costs are. Once you have visually mapped them out, you can move on to the next step. A clear overview in one image can give you a lot of information about which categories weigh the most and where you can save.

Step 3: Analyse your costs

Drawing of people planning their budget for a large screen with charts

Now that you have an overview of your costs, you can start looking at which categories you spend the most money on. Where can you save? For example, how much do you spend on energy, restaurant costs, sandwiches at lunch, etc.? You often don't think about these expenses, but also here you can save. It is also interesting to look at how your expenses within each category evolve over time. 

ROOV keeps everything neat and tidy so that you can consult it quickly and easily.

Step 4: Optimise your costs

Drawing of person comparing suppliers

The first 3 steps give you an overview of your spending and make it clear where there are possibilities to spend less. But what are the big costs that are easy to optimise?

  • Energy: Changing energy supplier (many Belgians constantly stay with the same supplier out of convenience).
  • Telecom: compare your telecom bill: many providers have special promotions that can be a significant saving for your family budget (and not only telephone bills but also your internet and television subscription are worth it)
  • Insurance: Every insurance you take out, even if it is a fire insurance, a car insurance, ... these are annual costs that are necessary for a good peace of mind. But isn't it interesting for you to do a comparative analysis of all your policies? 

You can optimise these costs without feeling a strong impact in your daily life; you have more money left over at the end of the month and you don't have to change your habits. ROOV helps you to find the best possible supplier for your consumption with the Comparator. You let us know where you would like to save, we will look for a better proposal and you decide, without any obligation, whether or not you want to switch. All this through an automatic analysis and in full compliance with the strictest privacy standards. 

Step 5: Set budget alerts

If you really want to budget like a pro you can also give yourself a target for each category. You then set a maximum budget for a certain category, here your goal is not to exceed this budget for a certain month. For example: For the month August I don't want to spend more than 100 euros on restaurants. 

ROOV will soon support you in this with the budgeting feature in which you can also set alerts if, for example, you are on 75% of your target budget.

People who start budgeting save an average more than 500 euros per year. What are you still waiting for? Get started quickly. 
 

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