Tip 2: "May addition" | Money tips |

Our Monday "Tip of the week"

As promised this month we'll talk about being smart with money for design phase, planning phase, cost phase and building phase. This is for building clients.

Recap  of  Tip 1: What is your budget?
We spoke about why knowing this is important and which questions need to be answered to know your budget.

Tip 2: How do you calculate your budget?
First of we need to answer the question of tip 1 and I'm going to tell you how.

What is possible to spent? INCOME MONEY

• This contains knowing your possible spending income for your project.( that means from your monthly, weekly or daily career income subtract the amount you use for personal usage and that will give the spending amount from your income) 

 What is the highest loan probability? LOAN MONEY

• First discuss with your contractor how much the project will cost
• Second go to different banks and ask if you're liable for a loan and how much is possible
• Third discuss the interest and the monthly cost for the loan
• Fourth make sure to choose a loan that won't kill you. If possible use advice from an accountant.
• Fifth get the loan in stages of the building process.   

What do you find fair to spent? YOUR MONEY LIMIT (FAIR FOR YOU)

• Always check every nook for the prices yourself and don't forget to compare. When you have all this information than you can make a wise decision about what is fair to spent.

What is your personal saving for this project? PERSONAL SAVING MONEY

• From your personal saving make sure to check what is possible to spent for this project

What is your monthly usable income for this project? MONTHLY USABLE MONEY

• By getting your project into building stages make sure to have that loan amount in certain stages. 
• This will become your monthly usable income for the project. In case more is needed use the saving to complete monthly tasks. But NEVER use ALL THE LOAN INCOME FOR ONE TASK because that means your project will not succeed.
• To make this monthly usable income work you'll need budget planning system.

Example: six month project ; total SRD 60.000
Income Money:            SRD   3000,-
Monthly Cost:              SRD   2000,-
Usable Income:            SRD   1000,-
Savings                         SRD 30.000,-(Always make sure to have the half of the money saved up)

Loan Income:               SRD 30.000,-
Loan Monthly Income:SRD 10.000,- (try using keep the monthly loan income up to SRD 10.000,-)

YOUR MONTHLY BUDGET SHOULD BE SRD 10.000,-