Whether you are a first time home buyer or you have bought a number of homes in the past, a household budget is a necessity before you make a real estate purchase as well as during your ownership. By preparing a budget, you can identify what size of mortgage you can afford as well as how the new house expenses will affect your life style. Maintaining a budget during the time you own the home can help to prevent potential financial disasters
as well as point you in a money saving direction so you have more funds available for those things that you need or want.
Developing a budget takes a little time but gathering together the necessary information beforehand can make the process much easier. Get everyone who will be involved in spending involved in developing the budget. You can print out a NUDIGS and use it to help you develop your household budget.
Some of the items and information you will need to develop your budget are:
Be realistic in your budget assessment. Make provisions for possible increases in some items (for example, school tuitions, insurance and taxes).Now, look for ways to maintain control over your budget
This budget now allows you to see what you can afford in fixed house payments - mortgage, taxes, insurance, heat, hydro and water. And what is left for personal living expenses.