Creating a budget can be one of the most challenging steps in the home-buying process. Here are a few simple ways to create a one.
Write down how much income you make every month.
Note your monthly expenses, and don’t skip out on any. For example: dining and drinks at restaurants, groceries, car payments, cell phone payments, subscription services, etc. Go over this list a few times to be sure you haven’t forgotten anything. Use your credit card statements to help you remember. Don’t forget to treat regularly saving as a bill.
Predict that you’ll spend no more than 28% of your monthly income on a mortgage every month, and determine if that suits how much you have leftover for other monthly expenses.
Toy around with your budget until you find a sweet spot where you feel like you can still live a comfortable life while paying off your mortgage.
Have more questions about budgeting? Or ready to speak to a mortgage broker? Get in touch and I’ll get you started.
