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:
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.
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.
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.
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.
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.
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Consummate professionals who take your business seriously, this dynamic team employs thirty years of leadership, mentoring and management to adeptly serve their real estate clientele. Nicole and Robin, better known as TEAM Metrowest, have been a top producing team since their entry into real estate in 2009 with over 350 homes sold in over 70 cities and towns throughout the greater Boston and Metrowest areas. Clients can count on prompt communications and a focus on details from a TEAM that cares as much about their client’s goals as they do about making a sale. In a business reliant upon referrals and repeat business, TEAM Metrowest prides itself on over 90% of their business coming directly from past clients.
