From our archive. This article was published on 28 September 2022. Rules and amounts may have changed since.
Budget management is a process in which a professional budget manager manages your finances and takes care of your money matters. This can be useful if you find it hard to get your finances in order and to keep them that way.
In budget management, a realistic budget is drawn up together with you. The budget manager then makes sure that your income is managed and that your fixed costs, such as rent, energy bills and insurance, are paid. The budget manager also takes care of repaying debts and building up a small savings pot for unexpected expenses.
If you opt for budget management, you hand over control of your finances. This means the budget manager receives and manages your income. As a result, you have no direct access to your money, but you do gain greater financial stability and peace of mind about your financial situation.
Budget management is particularly useful for people who find it hard to manage their finances themselves, or who are dealing with debt or other financial problems. It can be a temporary solution for getting out of debt and learning to handle money better. It is important to realise, however, that budget management comes with costs and is not the best solution for everyone.
Budget management is often offered by local social services. In a court-supervised debt settlement, an administrator appointed by the court may manage your income; find out which options exist in your country. Budget coaching, as we offer it, works differently: you stay in control of your own money, and the coach helps you build an overview, a realistic budget and good habits.
Get in touch with us for more information.