New year, new targets, new budget: how to get an overview of your finances

If January leaves a hole in your wallet, you know it’s time to take a closer look at your finances (again). A budget plan is the ideal tool for this. If you don’t have one, you can easily set one up in four steps. Otherwise, January is the ideal time to check through your budget. Use this opportunity to reflect on the previous year and plan your finances for the coming year. This allows you to adjust your budget to changes that arise due, for example, to a salary increase. In addition, set new targets for your yearly savings, retirement planning and investments so that you can plan larger expenses, such as holidays or other major purchases.

Why make a budget plan?

It’s actually quite simple: you have income and expenses. The only way you will have money left over to save up for something you want or to make an attractive investment is by earning more than you spend. Bet let’s be honest: we can’t just save money for our hopes and dreams. It’s important to have reserves so that we are prepared for any unforeseen expenses, are able to pay our taxes and can provide for our retirement in the long term.

With a budget plan, you can get an overview of your household’s finances and find out where you are spending money unnecessarily, as well as where you could perhaps save a bit more money.

Many people quickly lose track when planning a budget, but drawing up a budget plan isn’t difficult at all. Here’s how it works in five easy steps.

Step 1: three general rules to get you started

Before making a start on the specific breakdown, the first step is to pay attention to these three basic ground rules on how to structure your budget.

• Reserve around 60 percent of your income for fixed monthly costs (rent, taxes, health insurance).
• Housing costs should ideally not exceed a third of your available income.
• Expect to pay around 350 francs per month per adult for food shopping, and about half that per child.

Step 2: use the right tool

You can download an Excel template from the Internet, make your own Excel table or use a budget app. Whatever you choose to help you plan your budget, the important thing is that it works for you.

Step 3: put together a list of your income and expenses

Income: you can find information about your income in your salary statements or on your most recent tax return. Your income is made up of your salary or your pension. You might receive additional income in the form of state subsidies, interest and investment earnings, rental income payments or any other regular income.

Expenses: make sure you take into account monthly, yearly, half-yearly and quarterly costs. This includes your insurance premiums, the Half-Fare Travelcard and taxes. Check your account statements and credit card bills to do this. When planning your budget, also think about fixed costs that do not occur on a monthly basis – such as servicing your car, medical appointments and holidays. Work out how much you should put aside each month for these.

Step 4: deduct your expenses from your income

If this produces a negative figure, check your expenses again for any potential savings and recalculate the amount. You will find a few helpful pointers in the article “Unnecessary expenses that you can keep under control with a budget”. You can only build up reserves, provide for unforeseen events (e.g. fines, accidents, family emergencies) and save up for the things you want if you have money left over.

Summary

• Planning your budget at the beginning of the year is an effort that’s always worth it.
• You can spot savings opportunities and put some money aside into your savings account or retirement savings account 3a.
• Savings account: set up a standing order from your private account to your savings account. This lets you save regularly and you don’t have to remember to transfer money from your private account to your savings account each month. The interest paid on a savings account is higher than on a private account. The best time to transfer the savings amount is immediately after your salary is paid.
• Retirement savings account 3a: with the fixed pension plan (pillar 3a), you can build up assets for retirement while enjoying tax benefits. People in employment with OPA pension funds can pay in up to CHF 7,258 per year (as of 2025) a year for their retirement, while those in self-employment can pay in 20 percent of their earnings up to a maximum of CHF 36,288 per year (as of 2025). The money paid in can be deducted from taxable income. You don’t pay any wealth tax on the retirement assets and interest and investment earnings are exempt from income and withholding tax. In addition or as an alternative to fixed-interest account deposits, you can invest your retirement assets either partly or entirely in retirement funds. By doing so, you make provision for your retirement while also benefiting from the compound interest effect.

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