Budget for a House
Budgeting is not fun, but knowing how much you have to spend on a mortgage payment can make a huge difference when you start looking at houses. Most Americans spend almost 7% more than they make every month. So it’s not surprising that credit card debt keeps rising and so many people feel they can never afford to buy a home.
But with a little planning, you can afford a home, and developing a household budget is a great step to help you buy and maintain it.
Budget Sheets
You’ll need: your checkbook, your bank statements and any other financial records for:
- Variable expenses: like food, phone bills and medical expenses
- Fixed expenses: rent, child care, insurance
And a few hours to figure out your monthly averages over the course of a year. It’s best (and most educational) if you have everyone who is involved in spending the money be involved in developing the budget. That way you all see where the money goes each month, and can help make the budget realistic.