Financial planification :

Two essential tools were made available for you to print and use in the planification of your personal finances - the Balance Sheet and the Budget.

And there is always the Online Form, that allows us to analyse your financial situation in complete confidentiality.

The Balance Sheet

The balance sheet is a profile of your financial situation obtained by listing all of your assets and liabilities. We recommend that the exercise be done annually for a good follow-through.

The balance sheet divides itself into three sections :

Assets
This section lists the totality of the goods you own at the fair market value. The short-term assets are those that can be easily converted in cash, whereas the long-term assets usually are fixed assets like real estate and are not so easy to convert in cash.

Liabilities
This section lists all the liabilities one has and is divided the same way the assets are; the liabilities are divided between short-term and long-term.

Net Asset

The net asset is the difference between the sum of all the assets and the sum of all the liabilities.

The balance sheet is an important document when it comes to asking for a loan at a financial institution. Moreover, the balance sheet eases the budgeting process.

	printable (HTML)
	editable Word format (.doc)
	printable format (.pdf)

The Budget

The preparation of a budget is as important for someone with a high salary as well as for someone with a low salary. The budget helps us to adjust our expenses to the fluctuation of our revenues and this, no matter the amount of your revenue. If you spend more then you what you gain, this will result in a deficit each month, you will soon have problems in meeting your financial obligations if you don't change your consuming habits. A healthy management needs the elaboration of a realistic budget and a monthly check even if this task can seem boring at first. The budget helps to develop good consuming habits.

What are the advantages to plan our expenses?

To be able to face unpredictable events like replacing or maintaining valuable goods (car, electrical appliances);

Overcome hard periods where the revenue goes down because of illness, decease or unemployment;

Helps for the realisation of important projects on medium to long term, like a trip or the purchase of a house;

Assures a financial security feeling;

Release from the discretionary revenue, meaning the revenue available after paying the everyday expenses and which can be used for savings or the realisation of a particular project.

The elaboration of your budget:

This can be done on an annual basis, monthly or weekly. We suggest to revise your budget on a regular basis.

1- Calculate your annual net revenue, meaning your rough revenue minus the taxes and other contributions, which will give your available net revenue.

2- Subtract from this amount the payments related to your regular obligations and to your debts, for the next twelve (12) months (ex. Car loan, personal loan, mortgage or rent). Your will then obtain your available revenue that is left for essential needs, for savings and for the other non essential expenses.

3- For the other expenses that are hard to follow like outings (restaurant, theatre, special occasions), the elaboration of a budget could be a little more complicated. To be able to follow your expenses, we suggest to keep your receipts. It will then be easier to plan the amount of money to devote each month on the different budget accounts. The budget will become more accurate and it will be possible to analyse each accounts and to see if a reajustment wouldn't be profitable either to pay his debts or to accumulate savings.

	printable (HTML)
	editable Word format (.doc)
	printable format (.pdf)

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