Three Steps to Selling a HouseA new home is a fresh start and a chance to own something of your own. Be careful with your hard earned money and make it work for you by knowing exactly where it is all going.

Baton Rouge House BuyersDid you know that the average American today spends as much as 10% more than he or she makes in income? Sounds crazy, right? Consider the credit problems that are plaguing the US today and you’ll understand why.

When you purchase a new home you will want to be able to pay the mortgage and all of your bills. You can live comfortably without worrying over the utility shut off notices or falling behind on your mortgage if you create a budget guideline for your household and follow it.

Figure out what you bring in every month on a regular basis. Now gather all of your bills to see what you must pay. Items such as child care and insurance payments are non-changing and must be paid every month. Then gather the payments you make on an irregular basis. Doctor visits and co-pays, school photos, baseball signups, and car registration are a few examples of things you don’t always pay for, but must be taken care of. Utilities usually vary from season to season so try to get an average on those. Groceries and other living expenses should be listed.

Now compare the two and see how much more your income is than your expenses. If you have already received a pre-qualification from a lender or have your mortgage loan in place, the bank determined that you make enough income to support the home you bought or are in process of buying. With your income being more than adequate for your living expenses, you should be able to avoid using credit for anything but larger purchases.

  • Figure out what you bring in every month on a regular basis. Now gather all of your bills to see what you must pay.
  • Items such as child care and insurance payments are non-changing and must be paid every month. Then gather the payments you make on an irregular basis
  • If you don’t really know what you spend on each item, spend a month tracking your expenses. Every time you spend money log it and categorize it.

If you don’t really know what you spend on each item, spend a month tracking your expenses. Every time you spend money log it and categorize it. This will let you see what you are spending. If you want to cut back on your expenses you’ll be able to find places to do so.

For example, if you spend $4 every day to buy your coffee at the local coffee house that’s around $120 per month on coffee! You could choose to buy a smaller size or make your coffee at home and take it along in a nice travel mug instead. It’s important to form a budget once you know what you can get along on, then stick to it. Save for something special with the rest, or pay off some old debts you’d love to get rid of.

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