Читать книгу The Simple Guide to Buying a Home - Christine Cronin - Страница 2

When you first start to budget, it can feel like the fun is taken out of life. Budgeting takes time, puts limits on what you want to do, and can be a real downer – or so it feels. What you don’t expect is that this will ultimately set you free.

Let me start by explaining some advantages of budgeting. If you're prepared for unexpected financial emergencies your stress levels will do a lot better knowing that you can cover it. A lot of research has suggested that stress is very dangerous for us, especially for a long period of time. Let’s try to reduce it as much as possible by hoping for the best, but preparing for the worst. So, how budgeting will be fun is that it will allow you to afford the things you want, reduce your stress levels, and allow you to do the things you love.

There are budgeting templates below that I hope will be helpful in your exciting budgeting journey. When you write in your categories, start with the mandatory items, for example rent, utilities, food, etc. For a category that you don't use every month, such as “clothes,” estimate how much you spend a year and divide that by 12 for your monthly budget. Once you have all your categories, add up your total monthly expenses. Now, you can subtract your expenses from your income and see how much you have left over each month.

Next, add your line items for fun and non-mandatory categories, including money for entertainment, traveling, etc. Adjust your budget on those items based on how much you want to save each month depending on how much you want for savings and your down payment. If you want to buy sooner than later, then consider cutting expenses in non-mandatory categories. If you’d rather have more money for fun now, and buy later, then do that! This is your life and it’s important that you do what makes you happy. It’s also important that you find your own personalized way to budget your money to obtain your long-term goals.

To track your expenses on a weekly basis, make a spread sheet with all your categories on the left column and days of the week on the top row (see example below). Be sure to write down what you spend in each day and then add them up at the end of the week. Do this each week and see where your spending lands in each category for the month. At the end of the month, you might discover that you are over budget in restaurants and you are way under budget in your grocery shopping. It's important to know where your money is going. An old research professor of mine used to say, “If you can't measure it, you can't control it.” And we can measure our spending, so we can control it.

Keep in mind that the general recommendation is to have SIX MONTHS' worth of expenses saved up. If you can’t do six months' worth of expenses at least try to save an emergency repair fund that would cover major appliances, the roof, or other items that might need to be fixed in a home. When looking for a home, add up how much large appliances might cost to repair and make sure you have some savings to cover those repairs. I had a friend who bought a house that had a few AC units and when they all went out at the same time it was a huge expense at once. So, begin with the end in mind and hope for the best but prepare for the worst.

Lastly, determine how much you want to save up for your down payment and remember there are a lot of closing costs. Be aware that closing costs are set by the banks, but you will also need money for other fees during the closing process. Fees during the closing process include inspector fees, appraisal fees, and a few others depending on your needs. At closing, you will need your down payment, title fees, and might also need a year's worth of taxes and insurance depending on your escrow requirements. Be sure to ask your bank what you will need and what your escrow requires.

Some money-saving tips:

 Unsubscribe from apps or platforms that you don’t use

 Start with small saving goals like saving $20 a week vs $80 a month

 Track your budget on a daily basis

 Use the 24 hour rule before you purchase anything that might be unnecessary

 Only purchase clothes that will be first in your closet - that you absolutely love

 Buy higher quality clothes, they usually last longer and save more money in the end

 Buy sustainable / zero waste items (reusable wrap, glass containers instead of plastic bags, reusable water bottles, etc)

 Shop at farmers markets or co-ops - they are a lot cheaper and you are supporting your local community

 Buy necessary items in bulk

 Make sure to re-check the insurance rates each time your policy is up for renewal (car, renters, etc.)

 Preventative healthcare: Maintaining a healthy lifestyle will save you a lot of medical bills throughout your life

Budget templates:

Example of monthly budget template. Feel free to adjust to your financial needs.

Example of weekly budgeting template