How do I make a budget if I want to take out a loan?

To avoid taking out a loan without being sure that you are able to repay it, we recommend that you create an income and expense budget. 😊

How is this done? Simple. We help you put together information about your income and expenses, credit history, as well as the impact of the new loan, to make sure that the decision to take a loan will be informed and responsible.

Revenues – here you need to list absolutely all your sources of income.

Here are a few:

➕ Salary. Ok, if your salary is fixed, the matter is simple. However, if you are a day laborer or paid hourly, or based on commission, add to the budget the minimum salary you receive each month.

➕ The money you receive in the form of meal vouchers (these can be equated with variable expenses – see below)

➕ Child allowance – in case you are a parent (you know, that full-time job)

➕ The bonuses you receive periodically at the job

➕ The first ones – because we know you, you are amazing!

➕ The money you get from dividends (if applicable)

➕ The money that comes from tenants

Expenses – these are divided into:

1. Fixed expenses – meaning those that come every month and eat a little bit of your budget. You recognize them very easily by the following names:

➖ Rent

➖ Utilities – water, gas, electricity

➖ Subscriptions – for phone, internet, television, gym

➖ Loans – for example for a car

➖ Insurance

2. Variable expenses – these appear inconsistently, and when they occur, they take from your budget amounts that are hard to track. That is precisely why it is very important to recognize them and keep an eye on them:

➖ Food

➖ Relaxation activities

➖ Excursions and holidays

➖ Hygiene and cosmetic products

➖ Clothing and footwear, and the list can continue.

Now that you have made these lists, all you have left to do is subtract the total expenses from the total income. The resulting amount is actually the money you have left at the end of the month. What do you say? Does this budget still include one more installment for a loan? 🤔

If you are thinking about taking a loan, you can calculate the monthly installments online in BT credit simulator and then you find out by phone if you qualify for the desired amount.