Why should I use a budget?

budgeting

Budgeting

Budgeting is the act of creating a financial plan to suit you and your finances. It is often over a fixed period of time, whether this is half a year or a whole year. Creating a budget allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.

Why are budgets important?

A budget will enable you to see how much money you can spend over a certain period of time. Usually, people make a budget every month for a year, meaning that they are able to break down the month. This lets them understand how they can use their money without causing stress or havoc to their income. The last thing anyone wants is to be living paycheck to paycheck, so this is why it is important to be able to exactly see and plan the month ahead.

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Can anyone budget?

The simple answer is yes! Even whilst living on minimum wage, it is possible to be able to budget each month. You just need to find the perfect budgeting challenging to suit you and your income. For example, someone who earns triple digits will have a different budget to someone who earns less or more. It is entirely down to personal income and how much you spend on essentials in day to day life.

What are some of the most common budget plans?

The most common plan that people tend to believe works the best is the 50/30/20 rule. This is where 50% of your income is spent on the essentials like food and bills, 30% of your income goes on things you want. This could be things like clothing and eating out. Lastly, the remaining 20% should be saved, whether that be in a savings account or in a way that suits you. This has been proven to work for hundreds of thousands of people around the globe, but that doesn’t mean it will work for you, so here is another common plan.

Why not try an online budgeting plan? There are plenty of websites which will work out a plan for you for free if you enter all of the necessary information. Whilst you’re imputing all of your information, you will be able to see how much you exactly spend and where your money goes. In today’s society with technology advances and changes, it is so easy to spend money in a matter of seconds and then forget what you’ve bought in a weeks time. So, it will not only help with finding the perfect budget. But, it will also help you understand your spending patterns.

Is it bad if I don’t use a budget?

If you don’t use one and you are in a great financial position with no worries, then it might not be essential to you. But, that doesn’t mean you shouldn’t use one. We personally believe that everyone would benefit from a plan. Everyone should know how to manage their finances and exactly what they spend money on.

What can I do if I need money but don’t have enough?

If you are faced with an emergency but have no savings, one of the few options available is a loan. A personal loan is there to help you afford a large purchase or pay for an unexpected bill quickly. Thankfully, with Simple Personal Loans, you can borrow up to £35,000 for up to 6 years. This enables people to afford exactly what they need whilst giving them a stress-free repayment period.

Next Post: Common mistakes when buying a home and how to avoid them 

Benefits of using a real estate agent when buying your new home

Benefits of using an agent | Help of getting a loan

When you are looking for a home under a budget, you would want to save every single Euro you can. When you are looking for something specific, a real estate agent is the best person to turn to. They may just know the perfect house to fit your needs. You need to ensure that you get your hands on the right one, this means looking at reviews and asking people on their opinion of any agents they have previously used. The last thing you want is to spend too much money on a professional, for them to then turn out to be a waste of money. If the best agent you can find is a little over budget, why not consider a loan? A loan from Simple Personal Loans is something which you could borrow for up to 6 years. This means you have plenty of time to repay the borrowed money, giving you an easier experience.

Code of Ethics

Any real estate agent, whether they are under a real estate company or not must abide by their code of ethics. They are required to be honest about a home when they are dealing with a buyer.  This means you when you are looking through a house with an agent, you will be fully informed on its best features as well as its perks. The agent is required to inform the buyer s about the problems of a potential home. The code of ethics has the client’s interest at heart. The agents can face a fine or suspension for not following the code of ethics.

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Pricing

With a real estate agent, you can be sure to buy the property at the cheapest price possible. You may think that going through the houses online will give you a better deal but you are probably wrong. Experienced realtors know the value of a home as soon as they walk through it. They can tell whether a house is overpriced or underpriced. This way they can find an affordable house for you. In the cases where sellers don’t put up their sale notice on the internet, they hire a real estate agent.  You may find your perfect home under a real estate agency with minimal competition.

Will a loan help with repairs?

When you move into a home you bought of the owner, it can be hard to request a few changes here and there. The previous homeowner might have moved further away. You are less likely to get any repairs done to your new home.  Before moving to a house bought under an agency, the realtor will make sure a home inspector provides a report on the problems with the house. For serious issues, they request for repairs form the agency. Although, this doesn’t include just general improvements including DIY. So, maybe in this case too, a loan might be perfect. Simple Personal Loans offer home improvement loans to ensure that you are entirely happy with the look and feel of your home. With a loan like this, you are able to borrow up to £35,000 and repay it over the course of 6 years.

Paperwork

When you are buying a home, the paperwork can be tiresome and hard to deal with.  You have to fill a tone of paperwork, reading through it so you don’t miss a single detail. With a real estate agent, you can save your time and energy. They know every single detail about the house and the paperwork and will help you go through it fast.

Specific Features

If you are looking for a specific feature in a home, a real estate agency is the best place to turn to.  If you are looking for a house with a pool, a home office or any specific feature, you are likely to find one under a real estate agency.  Realtors are more aware of home features than houses sold on the internet. Agents are also very helpful when it comes to negotiating with the previous homeowners.  When you are short on a few hundred or thousand Pounds, the realtor will negotiate your way into your dream house.

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