Creating a successful budget is the first step for any successful financial plan. If you are trying to pay bills or save for a vacation; the budget is the first step toward making your financial goals a reality. What are the steps for creating a successful budget? Calculate your expenses In order to create a successful budget, you should know exactly how much you spend each month. This can be done by checking your bank info, receipts, and financial files, as some expenses are intermittent, such as insurance payments. You will envision the accurate financial status if you calculate your expenses for six months to one year. Add everything you spend during the six months to the previous year, and then divide by the number of months; it gives you the average of your monthly expenses. Determine your income Once you know how much money you need every month to be financially fulfilled, it’s time to determine your actual income. In addition to your salary, add any additional money during the year to the budget, such as selling items online, interest rates, dividends and rental income. Identifying the income is the foundation of a successful budget. Develop a plan to save expenses and pay financial commitments In order to set realistic saving targets, you should know if you have a shortfall. Do this by paying your monthly expenses from your income. If you’re making more profits than you spend, you can allocate this amount for saving and paying your debts. Tracking expenses The best way to stay within a successful budget is to list all expenses in addition to the income. Tracking expenses will let you think carefully before spending to show off or on luxury items. Be realistic Make sure to adhere on your budget most of the time, until you reach your financial goals. Breaking your budget from time to time is acceptable; remember to get back on track again as soon as possible.

A car loan is a sum of money one borrows from the bank in order to purchase a car. It does not enable you to obtain money in cash but the bank pays the money to the person or company that owns the car. Instead, the borrower agrees to pay the loan with an interest rate added to it, in the form of monthly payments, until the amount is fully paid. Car loans are almost guaranteed, this means that if the borrower fails to pay his payments, the car will be returned and sold to repay the loan debt. Basic car loan requirements Loan cost The loan amount is divided into two parts: the basic amount and the interest rate The basic amount is the car’s price. The interest rate refers to the total amount of the accumulated added amount over the loan’s period. Interest rate An interest rate is a basic rate charged on the borrowed amount of money. The first payment is a down payment that the borrower pays when purchasing a car. It is usually determined upon a certain percentage of the total price. It is not a must to get a car loan, sometimes the car is totally financed (100%), while sometimes and for some reasons the car is not totally financed. Terms and conditions This refers to all other articles of the car loan, including the duration of the loan mentioned usually as a number of months or years. It also includes the insurance and registration requirements, loan payoff and resell terms; maintenance requirements, conditions regarding theft or accident, conditions when failing to install payments, and other conditions. The borrower should read them carefully before signing on the loan.

Many financial institutions offer their customers varied online banking services where clients can do most of their banking operations online. Comfort is one, and not the only, of the main features of online banking services. We would like to mention several benefits of online banking instead of paying your branch a visit: Comfort You can perform your banking activities online 24 hours, so this service is no longer limited to the branch’s working hours. Mobility Online banking can be done from any place in the world as long as you’re connected to the Internet, even if you’re on a work leave or on a vacation, you still can complete your banking operations, and you don’t have to worry about losing any payment or any important banking activity. Automated Bill Payment With this benefit, you can schedule or automate your bill payment. Money Transfers You can transfer money online between your accounts and to other clients’ accounts whether they are clients of the same financial institution or in a different one anytime and anywhere. E-statement You don’t need to wait for your account statement to be delivered to your mail, you can receive it online within seconds, and all you have to do is to print it. Update your personal information easily Sometimes you need to check with your bank to update your personal or company information.

Medium-term goals are set to be between short-term that can be achieved and long-term goals that needs long periods to be achieved. What are the types of goals we are talking about? Usually, achieving goals start after graduating from University and having a job. Medium-term Goals: Buying a house Marriage costs Starting a family life or having a baby Repaying student loans Traveling Starting another career Starting a business With any goal you want to achieve, you have to know what you are aiming for, select what you want to do and put a specific amount of money needed. Process medium-term goals Put a list for your goals, achieve the first one, and then move to the second. Consider the importance of each goal and the schedule of your goals, Is there something you want to do more than the other? What goal do you want to do in two years? What is the goal that you want to do in five years? Use this question to determine your priorities. Keep your savings Saving money for medium-term goals is difficult; you can have your own emergency fund that you may use. Mid-term savings should be easy to access, and don’t put money in a deferred account because you will be fined for accessing your savings. Consider a high interest rate savings account so that you can access your money without fines. There is another way to save for all goals at the same time, open a savings account for each goal and spread your money between accounts. Think about your schedule and risk management Since the medium-term goals schedule is shorter than the retirement plan schedule, you must manage your risks carefully. You need to balance between protecting your savings to accumulate and getting a little growth and offsetting inflation. There is a long time between now and retirement, start saving for your medium-term goals to live your financial life without worrying.

It’s a loan given to you by the bank to buy a home. The home or property you are purchasing is used as a form of security in case you cannot settle the loan. The bank keeps your property’s title deed until your loan is fully settled. Before you ​apply for a home loan: Be aware of what you like and you don’t like, of the area and the price. Compare home loan rates and home loan providers (banks) to get the best deal. Keep your family’s needs in mind and make sure the home you buy works for your lifestyle. The two key factors in your loan settlement are: How much you borrow. The settlement duration. Generally you are required to pay back the home loan, as long as the interest, over a set period of time, most commonly between 20 to 25 years. At the beginning, most of your loan repayments will pay off the interest. Over time, more of your repayments will go pay off the actual amount of the loan. How do you qualify for a home loan? One of the most important factors a home loan provider will use when they consider you for a home loan is your loan affordability. This is based on what you earn compared to what your monthly loan repayments could be. The important factors to have a home loan:  Age Income and job stability Additional income Credit history Other debt The size of the deposit you can put down for the bank There are different types of House Loans depending on the purpose of: Housing-Purchase Loan Its purpose is to fulfill your ambition to buy a home under specific credit terms. Housing-Building Loan To help you build a home under specific credit terms. Housing-Maintenance Loan To help you maintain your home under specific credit terms. Housing-Extension Loans To expand your home under specific credit terms. Housing-Construction Loans To help you buy apartments or villas which are under construction. What happens if you can’t pay my housing loan? If you can’t settle the loan payments, the bank will sell your house at an auction. When the property is sold, the money will cover the loan.

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