Calculate your family budget and debt ratio
Why set up a monthly budget?
Drawing up a provisional budget helps you to better manage and forecast your resources and expenses. To this end, the module above allows you to calculate your individual monthly budget. read more
It allows better control of periodic expenses which are often very high and can affect the monthly budget considerably. (e.g. car insurance, wedding gifts, communion, holidays, etc.).
It is therefore advisable to draw up successive monthly budgets, at best for a whole year, to cover all the different types of expenses as well as unforeseen events.
Beware of overspending!
The most important thing in a provisional budget is not to exceed it and, if this is not possible due to force majeure, to take this into account when drawing up the following plans.
Why calculate your debt ratio?
Knowing your risk of over-indebtedness can help you to avoid a situation of latent over-indebtedness by, for example, by changing your consumption habits or consulting a specialised service before the situation is irreparably compromised.
Unfortunately, there is no reliable instrument for determining the risk of over-indebtedness. The most common indicator is the debt ratio.
This is the ratio between the amount of repayments the consumer has to make each month and his or her monthly disposable income.
If this rate exceeds 30 per cent of income, the consumer is at risk of becoming over-indebted. A rate of 20% may already constitute a danger of over-indebtedness for lower incomes.
The closer you get to the 60% threshold, the greater the risk of over-indebtedness.
Presentation of the module
The monthly budget calculation module is composed of four main groups, namely :
These are all the income and financial receipts (salary, pensions, etc.) enjoyed by the household, including family allowances, child bonus, alimony received, parental leave, etc.
- Monthly expenses
These are the expenses to be paid every month, the average amount of which can be determined each month. These expenses, in principle, remain quite similar from month to month.
- Periodic expenses
These are expenses that do not have a monthly due date: they are payable on a regular basis (every two months, every quarter or once a year), such as insurance, or possibly irregularly such as special events, communion, marriage, etc.
This is the monthly burden of incurred debts, i.e. the monthly payment that the household has to make to repay personal and mortgage loans.
The monthly budget calculation module will thus enable you to determine your budget situation at the end of the month (average balance available). The accuracy of the result obtained will obviously depend on the accuracy of the data entered.