Finance > Budget 101

Among many things that I’m still struggling to understand is the concept of budget In Tunisian families. I keep hearing that people always have money and regardless of the inflation, anyone can live the lavish life.

Normally, a budget is set by an individual or a group to keep expenditures and receivables balanced. A good budget is when spending is controlled and income is assured. Accpetable exceptions include going over-board to finance an extra-ordinary need or a long term investment…pretty simple concepts.

In order to depict a Tunisian 'budget', I’ve tried to gather as much data as possible about living standards in Tunisia; such as rent, level of incomes, collateral and incidentals.

My Assumptions were:

• Couple with 2 kids
• No heritage, Parents not rich either (No Zitoun, no land, no villa ready for them)
• Working hard in relatively high paying jobs.
• One car for the whole family.
• Outgoing family, always looking for fun enjoying good life overall.
• No loan payment
• Living in the Capital

I tried my best to be as realistic and as accurate as possible, however i may probably have missed few things here and there, therefore you are absolutely WELCOME to participate in the correction, addition, or omission of any item in the table below.

All figures are monthly in Tunisian Dinars.

Fixed Expenditure		Net Income / Capital
Rent: 450/m (a good 3 bedroom apartment or a level of a villa)		Salary for Dad: 1100 (gross: 1300)
Utilities (water, electricity, gas, etc): 80/m		Salary for Mom: 600 (gross: 800)
Car maintenance (1200/yr due to guaranteed accidents or scratches and road conditions): 120/m
Gas for the car: 50/m
Car insurance & highways toll: (800/yr, I may be wrong here): 70/m
Clothing for family: 150/m
Lady’s need & maintenance costs (makeup, weekly coiffeur, spa, etc) 100/m
Food: 150/m
Kids education needs (600/yr): 50/m
Restaurants (once in a month): 50/m
Doctors and Medicine (Medicare is extremely expensive in Tunis): 100/m
Home improvements, furniture, electronics & maintenance (1200/yr): 100/m
Cigarettes (I’m going to assume both smokers, each needs a pack for 3 days at 2DT/pack): 40/m
Communication fees (Tuntel, Tunisiana, land line): 80/m
Entertainment (Tunisians are ‘jawiste’ always on the look for concerts, shows, soccer games, etc): 80/m
Collateral or Luxury
ADSL: 50
Emergency or non emergency assistance (i.e. family member sick/dying, brother/sister marrying soon, loans, etc for 1200/yr): 100/m
Gifts for loved ones: 100/m
Trip planning (3000/yr per family: 250/m
Total Fixed: 1670		1700
Total Collateral: 450		0
Grant Total: 2120		1700
Budget Status: under-budget by 30 (excluding collaterals)

Well, overall, it’s not that bad, however such a tight budget is very hard to stick to and chances are the slim margin will be wiped out by unpredictable fixed expendituers or collaterals. So the outcome would be naturally debt since income level do not rise that fast in tunisia to match up inflation or the need to expand lifestyles. Such debts would be mostly informal debts through friends and killer debts through the banks…and that’s the outcome we see today.

No savings, interminable cycle of debts, stress and materialistic society..where human relationships become based on financial opportunities...

Again, if you feel you can add, alter or remove any item from the table, please feel free to comment about it, this exercise is really a collaborative effort among all bloggeurs.