 |
BudgetingMaking and maintaining a budget is an important task, especially when
thinking about entering the real estate market and throughout the life of your
mortgage. If you already have a budget prepared when house-hunting, it will allow
you to better determine your mortgage payment goals. Keeping a budget while you
already have a mortgage helps you avoid financial problems and can even help you
build your savings. No one ever said getting a budget together is easy,
but its certainly not an impossible task. Your first step is gathering the financial
information you need. You should also make sure everyone in the family who is
involved in spending is involved in making your budget. There are certain
basics you should gather when preparing the budget: All monthly loan
payments
All other monthly expenses (child care, dues, etc.)
Record of the last 12 months variable expenses (utilities, food, car repair, etc.)
Records of annual or otherwise periodic expenses (taxes, insurance, etc.)
An estimate of your new mortgage payment
Records of non-fixed expenses
for the year, such as medical expenses
Records of personal expenses,
such as entertainment and travel
A current copy of your credit reportWhen
making your budget, you should also remember to make provisions for possible emergency
spending or for payments or expenses that might increase. In other words, leave
some wiggle room in your budget for unforeseen circumstances. When making
your budget, you might want to reflect on a surprising fact - most people spend
10 percent more than what they make each year. This may be less surprising when
you consider how much credit card debt the average person has. One reason this
occurs is that you often never see your money, with the current prevalence of
debit and credit cards, automatic deposits, and wire transfers. A good budget
can help prevent you from overspending.
|
|
|
