subject: Before Purchasing a Home, Set A Family Budget [print this page] Before Purchasing a Home, Set A Family Budget
Setting a family budget should not be viewed as an exercise in futility. Budgets are extremely important and are necessary in order for a family to meet their long term goals. Financial stability and independence does not just occur spontaneously, but it is crafted and moulded. For families buying their first home or upgrading to a new home, establishing a family budget is crucial. By doing so, families will know how much income they have available to dedicate to a mortgage payment. It is best for families to determine the amount they can afford to spend each month on a mortgage before they begin the conveyancing process. This will narrow the search field and ensure families find a home with which they are pleased and can afford.How to Build a Family Budget -Track Spending - Tracking spending is one of the most important functions of a family budget. This will help families to pinpoint their monthly expenses and identify those areas in which spending could be cutback. Establishing a list of fixed and discretionary expenses helps families determine those areas in which they have financial flexibility. Expenses that should be considered include things such as: mortgage, utilities, insurance, car payment, other car expenses, groceries, dining out, clothing for the family, and savings.Set a Goal - If the family's desire is to purchase a home, they need to set this dream as the ultimate goal of their budget. Their monthly expenses will then be tailored to ensure adequate money is set aside each month for the required down payment or the mortgage. It is essential that families make certain they have enough money each month for a mortgage payment before beginning the conveyancing process. A family's dream can be quickly crushed when at the conclusion of the conveyancing process they find they cannot afford the home's mortgage payments.Sacrifice Now for the Future - Purchasing some home brand products i s just one of the many small sacrifices that families can make to meet their goal of owning a home. Having a movie and pizza night at home instead of going out for dinner and to the movies, checking your local supermarket flyers for specials and/or purchasing your fruit and vegetables at the weekend markets are ways to reduce your spending. Eating at home and taking a sack lunch to work are other ways families can save a significant amount of money each month.Families that are considering purchasing a home are advised to first build a budget before beginning the conveyancing process. This will help families establish realistic goals for themselves and purchase a home within their means. A home is one of the family's most important investments, and making wise choices now will help secure the family's financial future.
