Personal Finances. Engelsk

Transcription

1 Personal Finances Engelsk

2 INITIALLY Engelsk Why is it important to have control over your spending? And how do we do it? The goal is to have control over your finances so that your finances don t take control of you. There must be a balance between earnings and expenditures. That means you need to have an overview of what s coming in and what s going out. A budget is exactly the tool you need to do just that. In Norway a bank is involved in almost every kind of transaction, receiving your salary, paying bills,online shopping, saving money etc. People carry very little cash. Instead they use a variety of bank cards to carry out their daily transactions. Online banking, pre-authorized bank transfers, electronic bills, Vipps and MobilePay, and many other payment methods are normal and easy to use. It can feel uncomfortable and unfamiliar for those who are not use to using these methods and can have trouble communicating with others in order to learn how. 1 The financial system requires you to understand Norwegian; have login information and that can be a lot to wrap your head around. DON T BE SCARED!! You will learn quickly and get help from the personnel employed at the bank. This way you will have a good handle on your personal finances and you will be able to plan your financial future. You can plan to buy a house, car, go on vacation or whatever else you would like. Your bank can also give you advice concerning your personal finances. Anything from your salary to your pension. 1. Your Budget What is a budget? What should my budget include? A budget is a record of earnings and outgoing costs over a set period. Usually over a month or a year. A budget is an accounting of the financial consequences of the budget period you have set. It is smart to have a budget so that you know what you are spending money on and what you will need money for in the future. It sometimes happens that we are low on money but we can t account for where our money has gone. When you have a budget you have a full overview of where, when you are using your money and can save money for the future.

3 2. Shopping List Engelsk Food and drink represent a large chunk of our budget. One of the best ways to keep control over spending on food and drink is to shop only once a week. Everytime we go into stores we open ourselves up to unplanned spending. A side effect of organizing to shop only once a week is that we can also plan a healthier diet for our families. Take a look at the following example. Make a week s meal plan with the other members of your family. Make a shopping list Shop once a week Exseple: 2 For Breakfast and Lunch Meal Plan Dinner What do I need? Monday 3 pk. Bread Chicken and pasta Chicken, pasta Tuesday Cheese Salmon and Potatoes Salmon Wednesday Jam Caviar Lasagne Ground Beef Thursday Butter Chicken Friday Eggs Milk Taco Taco spices, sour cream Saturday Juice Pizza Cheese Sunday Beef with potatoes Beef and onions 3. Bank Services and Account Types It is normal to have several types of bank accounts without extra costs. The typical accounts are chequing, savings, salary and mortgage. It is smart to have these different accounts to create structure and an overview of your money. One often sets aside a little bit of money every month to save and it is nice to have it in a dedicated account. Similarly with monthly bills like heating and electricity which can sometimes be very expensive.

4 Engelsk 4. Bank Cards With a debit card you can take out cash and pay at normal payment terminals in stores etc. To get a debit card you need your passport and personal number before you can order one from the bank. 3 Normal delivery time is within 1-2 weeks and there is a yearly fee related to the card that varies from bank to bank. Normal debit cards do not come equipped with a picture on the back and can therefore not be used a a form of legal identification. You can check the balance (how much money you have and what payments you have made) on online banking or at a banking terminal. Debit cards are different from credit cards. Debit cards are linked to the account you get paid into and it is the card you typically use to buy food a to take out cash. Credit cards are for when you get credit or a loan from the bank. In this case you receive a bill after and standard time where you must pay back the money you have spent on the card. If you do not you will have to pay interest on the remaining balance and this is often very expensive.

5 Engelsk 5. Payment Methods It is important to pay your bills before the due date. Failing to do so can cost a lot of money in late fees. It is smart to contact the company that your owe money to if you realise suddenly that you will not be able to pay the bill on time. It helps to be proactive and they will often have a way to help you deal pay down the bill in time. 4 There are many different payment methods. The most common is online banking where you can see your account balance, make payments, transfer money between accounts even send money overseas. Here we explain what kind of bills one can receive and how best to pay them. Avtalegiro. A pre-authorized often monthly payment that will automatically be withdrawn from a chosen account on a fixed date. You can easily change this automatic payment or stop it if necessary. This is a great method of payment for monthly bills like your mortgage, electricity, insurance, gym membership, subscriptions, charitable giving. Electronic Bill. This bill arrives already prepared in your online banking all you have to do is give it permission to be paid. You can pay this bill wherever you are whenever as long as it is before the due date. You can choose from what account and what bank you would like to pay it from.

6 Engelsk Vipps Vipps. Is an application on your phone most often used to transfer money between friends or when you are buying things second hand from Finn. You can download it from the Apple Store or Google Play at no charge. Download it and get started! It is that easy! 1. Download the app 2. Fill in card and account information 3. Send or receive money You can either search for who you want to send money to in your contacts or by using their phone number. Just put in the amount of money you owe and press send money and the money is on it s way. You can also pay your bills this way. For more information visit 5 Mobilbank Banking on your phone is a service provided by your bank. You simply download your banks app through the Apple Store or Google Play they are normally free. Mobile banking is easy to use and a fast way to: Check your account balance and pay your bills Transferring money between accounts Contribute to your pension and more For more information consult your bank.

7 Engelsk 6. Insurance Insurance is the best way to protect yourself against unknown circumstances, health crisis and accidents. Insurance is actually the sharing of risk between contributors to an insurance company. It is normal to have home insurance, health insurance, travel insurance etc. 6

8 Budget 2018 Engelsk Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov Des 1 Salary 1 2 Salary 2 3 Child support 4 Other Total Income 1 Mortgage/ rent 7 2 Kommune avg. 3 Electricity 4 Insurance 5 TV- license 6 Kindergarten 7 After School Care 8 Internett 9 Mobil/tlf 10 Food and drink 11 Clothing and shoes 12 Doctor / dentist 13 Gas/ car 14 Tobacco/alcohol 15 Eating out 16 Hobbies 17 Gifts 18 Travel 19 Other Total