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Loan and Budget Strategy

The answer depends on the following factors: your current financial situation, your future prospects and especially your personality. Over time, adapting your budget strategy to your personality will help you achieve the desired success.

Let’s take a closer look at budget strategies tailored to personality types.


The Micro Manager

The Micro loan

A well-organized, detail-oriented person may want a “zero-based” budget. This funding strategy allocates each dollar earned to a given category. It even includes entertainment and savings. Instead of dollars, a “zero-based” budget uses a certain percentage of the monthly income for each category. It works well only if the percentages reach exactly 100%.

A “zero-based” budget will prove too restrictive for those who need flexibility.


Free and spontaneous people.

Free and spontaneous people.

People who want more flexibility find that a “zero-based” budget does not give enough freedom. They can then replace it with a strategy based on ratios such as a 60-40 budget or, better yet, a 50-30-20 budget.

The 50-30-20 budget breaks down as follows: 50% of your income goes to housing, food, electricity, utilities and transportation. 20% is used for savings or, if necessary, debt repayment. You use the last 30% for entertainment, hobbies or anything else that a free-spirited person may be interested in.

The fact that you can use 20% of this budget to pay for unforeseen expenses is a big advantage. For example, if you have to pay for an unexpected repair, you will request a personal loan online to cover the upfront cost. Then you will repay this one using the 20% set aside for savings or debt. Once the personal loan is paid online, you will use the 20% to save.


For those who do not like to plan a budget


This category includes many people who are aware that they have to plan a budget but do not want to spend a lot of time on it. Fortunately, modern financial tools make it possible to establish a budget that we can, more or less, forget. You can pay your bills by setting up automatic payments. These will guarantee that everything is paid on time. If you have additional funds at the end of the month, you could either manually make one more payment or automatically transfer funds to your account to reach your savings goals. All this will be accomplished without effort on your part.

Where to place variable or unexpected expenses? People who are reluctant to plan will benefit from the “envelope” budget method. They will only go to the bank once a month. They will withdraw the necessary money monthly and place it in the envelopes allocated to each specific category (food, entertainment, gas, etc.). You will therefore put the money for contingencies in the category of the month “All expenses”.

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