15 Apr 5 Quick Tips to Help You Budget for a New Home
Handling money is an artform. Many people live paycheck to paycheck, while others save sporadically, but when you’re looking for a new home, a real commitment and discipline is required. It involves a word many fear for good reason: budgeting.
If you’re beginning the process of home buying, it doesn’t need to strike fear in your heart. Quite the opposite: all it requires is a little planning. Whether you’re already looking at new homes or just thinking ahead, here are 5 quick tips that’ll help you create a budget.
1. Pick a Day
A vague idea of when you’d like to move out won’t cut it. You need to set a date. This will force you to start budgeting immediately.
Don’t make it unrealistic either. Two years of savings is the most recommended amount of time and if you’re going to follow through with the following steps, you’re going to need the head start.
2. Eliminate Your Debt
This may be easier said than done. You’re going to eventually borrow money and if the people, companies or banks that are lending it to you see you’ve taken the steps to get rid of your debts, then it’ll do nothing but make things easier for you.
Do anything and everything to head into your budgeting with a clean slate. If you have to, think of debt consolidation or talk to your bank.
3. Split the Payment
If you’re going in on this with someone else, you should consider a dry run. Open up a savings account and every month pay half of a mock mortgage payment. This will build up quickly between the two of you.
Open up the most attractive savings account you can. Whether it be high interest, tax-free or anything else your bank or accountant recommends, try to get an edge.
4. Cut the Fat
If you haven’t already, map out all your income and your expenses. That means everything from bills to the muffin you buy on rough mornings. This should leave you with your net income or your ‘take home pay.’
If you were honest with yourself, you should already see some extras that you can do away with. This is a long-term commitment and that means sacrifice. Let go of anything that isn’t necessary, and if you can’t let go of something (food for example), buy cheaper brands.
5. Make an Emergency Fund
Owning a home is not like renting. Homeowners quickly learn that repairs and maintenance bills are a real money sink. While you save you should consider opening up a second savings account with a small regular deposit.
Ready to Start Looking for Your Dream Home?
Once you’ve got your budget plans laid out, you’ll have a better springboard for the house hunting process. But where do you begin looking? Now that you know what you can afford, you can start considering how you’ll be making an investment in property.
When it comes to the best return on your investment, buying a brand new home is going to ensure that you end up with an entity that will have increased value in the future. At Previn Court Homes, we know that home buyers are looking for a residence that will make them feel both physically and financially comfortable. Learn more about our beautiful affordable new homes to buy, or contact us to register for priority updates and special offers, and find the perfect home for your budget.