As a new homeowner, one of the first important tasks to accomplish is making a budget for home expenses. The homebuying process had a budget, but now it’s time to think about taking care of your home and enjoying it to the fullest.
To help you get started on making a household budget, here is a basic guide:
Identify your goals
Deciding on financial goals can be an excellent way to build your budget. Some examples of financial goals to consider might be paying off your mortgage early or financing a major renovation project.
List your expenses
Track your spending habits for a month to examine the details of your cash outflow. Include fixed expenses, like monthly mortgage payments and property taxes. Variable expenses like entertainment, maintenance and transportation costs should also be included.
Record your earnings
Figure out your exact income amount by listing all possible sources of money. This could include regular employment and also gains from selling or renting assets. For budgeting, use your net monthly income rather than gross monthly income to account for taxes.
Find your starting point
Once you have your total monthly expenses and net income numbers, you can do the math. A basic formula for finding a starting budget is: net income - total monthly expenses = monthly budget.
Expect adjustments
After finding your results, you may find opportunities to adjust. For example, you might want to set aside more money into an emergency fund regularly, or find ways to limit your daily spending.
These are only the first steps in creating a workable household budget to account for ongoing costs of homeownership. Use this process as an example for building your own personalized financial plan for your life in your new home.
About the Author
Sheida Rezazadeh
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I find it very satisfying to be able to help my clients achieve their dreams through Real Estate. I have over 20 years experience in the Real Estate Industry. I began my career with my own investment in and management of multiple properties. I use my insight into the Real Estate industry and my vast negotiation skills to provide my clients with exceptional service. I am able to use first hand knowledge, acquired by my years of experience, to guide my clients through the process of buying or selling their properties. Whether it be Residential, Luxury, Multi-Unit, or Commercial Real Estate, I possess the Real Estate acumen to secure top dollar for my sellers and the best properties at the best possible price for my buyers! As a mother and wife I know the importance of creating the sanctuary of a home, as well as, the security that investing in Real Estate can bring to you and your family. I understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. That’s why our team of highly-seasoned real estate professionals is dedicated to providing exceptional, personalized service for all of our clients. We take great pride in the relationships we build and always work relentlessly on the client’s behalf to help them achieve their real estate goals. Our team of experts represents the best and brightest in the industry, and we’re always striving to lead the field in research, innovation, and consumer education. Today’s buyers and sellers need a trusted resource that can guide them through the complex world of real estate. With our extensive knowledge and commitment to providing only the best and most timely information to our clients, we are your go-to source for real estate industry insight and advice.