Are you saving up for your future but you still have desires to buy a new home? Let us help you achieve
both by giving you these tips. Here’s how:
1. Create a budget plan
In creating a budget plan, calculate all your expenses. Try finding out how are you spending each month.
In doing this you must consult your bank statements, receipts and financial files. Because some
expenses are recurrent, such as insurance payments, you’ll get the most accurate financial picture if you
calculate an average for six months to a year. Combine everything you spent for the last six to 12
months and then divide by the number of months, which will give you your average monthly expenses.
2. Determine your income
After you’ve figured out how much money you need to stay afloat financially each month through the
budget plan you have created, it’s time to determine your actual income. Besides your regular salary,
get an accurate picture by adding in any extra funds that come your way throughout the year, such as
cash gifts, sale of items online or via garage sales, and don’t forget other income sources like alimony,
child support, interest, dividends and rental income.
3. Set savings and debt payoff goals
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.
But if you determine you’re spending more than you’re making, it’s time to do some cutting so you have
something to save and don’t go further into debt. 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.
One you have a clear picture of where all of your money goes, be hard-hearted in cutting expenses until
your budget is in the black. Lessen your expenses so that you have 10 percent to 20 percent of your
income left over each month to add to your savings account. If you are unable to cut a sufficient amount
from your budget, consider finding ways where you can increase your income. A lot of work-from-home
jobs has been circulating online try to look for one.
4. Record spending and track progress
The best way to stay on top of your budget is to record all of your expenses and income. Having to input
expenses will cause you to think twice before splurging, and it’s especially satisfying and motivating to
record when you’ve met a savings goal.
5. Be realistic
Aim for sticking to your budget most of the time, and you’re bound to reach your financial goals.
Breaking your budget occasionally is OK, providing you get right back on track as soon as possible.
6. Look for affordable houses
In continuation from the previous tip, we know that this sounds very far from reality but we can still see
some affordable houses online. You just have to decrease your standards a bit and also your
expectations and you are good to go.
By following these tips, we know that you will achieve both saving up and your desires to purchase a
new home! Good luck!