How to best handle money
How to deal with money
If we advise you to manage your money correctly, you may be wondering where the tip is After all, you have known for a long time that you should be careful with money. The only question is how to do that. Here you can read a brief guide on the most important things that you should be careful so that your finances are not put in trouble.
The golden rule
The single most important tip anyone can give you is that you should never spend more than you take in. That sounds easier now than it is in reality. For example, if all you have CHF 2,000 per month, you will save a relatively long time to buy a car if you do not want your account balance slides in red Unfortunately, this isn’t always feasible In order to keep the costs lower than the income, you could also finance the car with a small loan. This has a relatively short-term and, if the monthly payments are convenient for you, this is a way to buy a car.
When the expenses are bigger than the income
There are a whole host of expenses that not everyone can afford right away. It starts with unplanned purchases for the family, because, for example, the washing machine is broken and needs to be replaced, but at the same time the maintenance was taken over and thus the money is already finished planned. So what to do
If there is a small amount that you can save again within the next 1-2 months, you can simply overdraw your current account. You pay comparatively high interest for this, but you do not have to take out a special loan. Alternatively, you could borrow this small amount of money from family members or friends. Whatever you prefer.
If the purchase is more valuable and the repayment cannot be made within a few months, then you should consider getting a loan. Find out more about the various options with us. Depending on the amount you need and the term in which you will be able to repay the debt, you will be offered interest rates and calculated repayment installments. So you can see immediately what amount is affordable for you and in what period of time. For really large purchases, such as real estate, you will likely need to make an appointment with your bank mortgage advisor. Because these loans have a very long term, this means a very long payment obligation for you that needs to be carefully considered and calculated.