LET'S CREATE A BUDGET!
WHY? Because we believe you can be a homeowner owning an investment.
Every great financial plan starts with a BUDGET. If you’re trying to save for a down payment for a dream home, pay off bills or save for a dream vacation, a budget is your first step toward making your financial goals a reality. Here are a few steps for setting up a realistic budget.
So how much do you bring home each monthly in total. Now calculate your expenses. How much are you exactly spending each month. Do this by consulting your bank statements, monthly recurring bills, receipts and all financial files. Because some expenses are intermittent, such as insurance payments, you’ll get the most accurate financial picture if you calculate an average for six months to a year. Add up everything you spent for the last six to 12 months and then divide by the amount of months, which will give you your average monthly expenses.
Its important to be honest with yourself about your spending or it throws a wrench into your savings plan. When calculating your expenses, also factor in unexpected bills, such as unplanned car repairs.
Set goals to save and pay debts.
In order to determine realistic savings and debt payoff goals, you must find out if you have a budget shortfall or overage. Do this by subtracting your monthly expenses from your income. If you determine you’re making more money than you’re spending, CONGRATULATIONS! This amount can be earmarked for savings and to pay off debt.
Key is to save and don’t go further into debt. So the best way to figure out where you can cut from your expenses is to track your spending and record every expense for a month. Seemingly insignificant items such as a cup of coffee add up over time. For instance, even if you spend just $5 a week on snacks, that adds up to $260 a year.
Record and Track most importantly be Realistic!
Save! SAVE! We welcome any questions about Real Estate and future home payments.
Lets chat! We like for you to be a homeowner! We ❤Referrals!
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