Christine Sosa - RE/MAX On The River



Posted by Christine Sosa on 1/22/2018

If budgeting isn’t your thing, you’ll be glad to discover that it’s quite simple. There’s a way to categorize your spending and save money easily. If you learn the rule, it will become so automatic that you won’t even think about it. If you’re saving money for a home, this practice will be essential. Break your budget down into three categories: 


  • Living expenses
  • Financial goals
  • Personal spending


Half of your budget should go towards living expenses. This number includes all of the essentials like rent or mortgage, utilities, groceries, commute costs, and insurances. 


20 percent of your income should go towards other financial goals like savings, investments, or paying down debt. Credit card bills, student loans, and other bills would fall under this category. This category is also where you’d save for your down payment, closing costs, and other expenses. This percentage can be adjustable depending on how much debt you have or how much you need to save for retirement. 


The remaining 30 percent of your income can go towards personal spending. This category includes everything that you use your money for but isn’t a necessity. This percentage is also flexible. If your lifestyle doesn’t require you to use all 30 percent each month, you can indeed save more money.


A Clear Plan 


These categories simplify your budget. Even if you make some adjustments to the numbers, the outline truly makes budgeting easy even for the most scatterbrained among us. It allows you to see where your money goes clearly. It also works no matter what kind of living situation you have.


The great thing about this budgeting plan is that you have some future needs built into it. Many times, when we budget, we think of our immediate needs and our shorter term goals. Saving for any occasion can never happen too early. You are able to not only focus on your current goals and the future.   



Steps


First, determine your monthly income. This number is how much money you take home after taxes. From here, you’ll be able to split your money into categories by percentages. If your income fluctuates frequently, you’ll need to take an average of your monthly income to determine your numbers. 


Next, you should take a look at your spending habits. These include everything from your morning latte to your monthly rent payment. From here you can make adjustments. Perhaps you need to look for a less expensive apartment. Maybe you need to cut down your weekly pizza to a bi-monthly purchase. Whatever you see in your finances, a simple percentage rule gives you the tools you need to become a saver and be well on your way to the purchase of your first home.     





Tags: saving money   budgeting  
Categories: Buying a Home   budgeting  


Posted by Christine Sosa on 1/1/2018

When you're a new homeowner, it's hard to refrain from walking down the aisle of Bed Bath & Beyond and dumping everything you see into your cart. Initially, when making a shopping list for your new home it will seem like you need everything  and you need it now. It doesn't always make sense, however, to go on shopping sprees and starting several different renovation projects at once in your new home. Whether you need to be conservative with your money or you want to take your time and furnish one room of your house at a time, creating a household spending budget can be an invaluable tool. In this article, we'll cover how to make your own personalized household budget that you and your family or housemates can use to keep yourselves accountable when it comes to making your new house uniquely your own.

Set priorities

Moving into a new home can be sort of like camping out for the first few nights. Many of the basic things you take for granted might not be unpacked  or set up yet. Other items you might still need to purchase. This is a good reminder of which items matter the most when moving into a home. When you prepare to make your budget, think about the items on your list that are the most vital to your daily life. This may be different for each person. If you're an avid yoga practitioner but your yoga mat got ruined in the move, buying a new one might be higher up on your list of priorities than the average person who occasionally stretches. The best way to find out what items are high up on your list is to go through a few days in your new home and write down everything you need, then arrange it in order of importance. From there, we can start setting your budget.

Budgeting tools

Depending on how comfortable you are with technology, you have several options when it comes to ways of keeping a budget. In your Appstore you'll find a plethora of free budgeting apps that all fit a specific need. One of the most popular, Mint, connects securely with your bank account and lets you set up several budgets. It will track your income and spending and categorize your purchases automatically (groceries, gas, bills, etc.). You can set a "household" budget in Mint and make sure all your home purchases go into that category. If you're more inclined to using a spreadsheet, you can use Google Sheets, or a program like Excel to create your budget. The benefit of using Google Sheets is that it is easily shared and synced with others, allowing you to collaborate on the budget together. Your final option is to use a good old fashion hand-written budget. If you don't want it to be forgotten, you could hang it on the refrigerator or write it on a whiteboard hung somewhere highly visible in your house.

Commitment

The hardest part of budgeting is committing to it. You and your housemates will need to work together to make sure you keep track of your purchases and take the time to plan out your budget, be it weekly or monthly. The best way to do this is to set a reminder in your calendar for a budget planning day once per month with your housemates. Decide what needs to be purchased and who will be buying it. Once you've made a habit of keeping your household budget, you'll be on your way to completing your home in a way that makes sense for you financially.




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