Tips on House Budget Planning
Whether you are purchasing a new home or you are an existing homeowner it is important to set up a house budget. It is much easier to pay your debts when a budget is in place, rather than scraping change to get by month to month.
First Time Home Buyers
Before you sign the paperwork on your new home you should make sure your budget allows you to live comfortably inside your new home. You do not want to make the purchase only to discover a few months later that you really can not afford to live there.
If you are taking out a loan to purchase your new home you should first meet with your financial institution to determine the monthly amount and the number of months it will take to pay off the debt. Your second step is to total the cost of your monthly bills. Last you want to deduct the total amount you will need to spend each month from the total amount of your monthly income.
Once you do the above steps you need to make sure that the amount of funds left over is enough to cover any other expense you will have each month. This would include food, gas, and personal amenities. You should also make sure that you have enough money leftover to cover the costs of an unexpected expense.
If you follow all of these steps and determine you can live comfortably month to month, you will be able to live in your new home relatively stress free, as far as your financial situation is concerned.
Existing Homeowners
If you have already purchased your home and you do not have a budget in place there is no better time to incorporate one than right now. By setting up a budget you can better control your finances and you can actually find new ways to cut down on your expenses which will help your savings to grow!
You should follow the same steps described above. First you should total all of your expenses and deduct the amount from your income. If you have funds left over you are on the right track. If you should find yourself not having enough funds to cover your expenses you will need to take a closer look at each expense and see how you can lower the costs.
Once you complete those steps you will feel the burden of financial stress lift off of your shoulders and you will be able to live much more comfortably within your financial means.
Renters
Even if you are renting your property it is a great idea to follow the steps to set up a budget for yourself. By having a budget in place it can help you to save up enough funds to finally purchase your own home.
Example House Budget
Income Source
| Monthly Amount
| Expenses
| Monthly Amount
|
|---|---|---|---|
Employment
| $2000.00
| Home Loan Payment
| $200.00
|
Electric
| 100.00
| ||
Telephone/Cell Phone
| 40.00
| ||
Internet
| 20.00
| ||
Homeowners Insurance
| 60.00
| ||
Auto Insurance
| 50.00
| ||
Heating
| 100.00
| ||
Cable/Satelite
| 40.00
| ||
Water
| 75.00
| ||
Trash Removal
| 25.00
| ||
Sewer
| 25.00
| ||
Credit Cards/Other Loans
| 100.00
| ||
Food
| 300.00
| ||
Gas
| 200.00
| ||
Personal Amenities
| 200.00
| ||
Total Income
| $2000.00
| Total Expenses
| $1535.00
|
According to this examply budget the person would have $465.00 left at the end of each month. This money can be placed in a savings account. It can also be used to help cover the cost of an unexpected expense.
The Final Budget Plan
You may need to adjust your budget a few times before it becomes final. This may take a few months so do not become discouraged. Some of your monthly expenses may fluctuate in price so it may take some practice to determine an appropriate amount to set aside each month. Also you may have forgotten an expense or even acquired a new expense and will need to make adjustments.
It is also a good idea to look over your budget every few months to see if you can save yourself some money!
