The financial aspects of buying a home don't end with the purchase. Home ownership comes with its own ongoing fees and future expenses you'll need to prepare for. The best way to do so is to establish a balanced household budget. Here are some tips for how to get started:
Set Your Goals
Once you have a clear idea of what's important to you, managing your household budget won't seem as daunting. The best place to begin is by identifying and setting some financial goals. These can be short-term goals like purchasing a new appliance or long-term goals like a large renovation project. Make a list of the most important goals for your household so you have a clear idea of how to manage your finances accordingly.
Identify Income & Expenses
Once you've established your financial goals, it's time to consider the actual numbers. The key to budgeting is to know how much money you have coming in and where it's going. Tracking income is typically as simple as consulting pay stubs or deposit statements. You can also include other income like tax benefits and commissions.
Then, identify what you spend your money on. Try making a list with various categories to separate annual, monthly and everyday expenses. In addition to things like groceries, utility bills and transportation costs, make sure to include things like credit card payments, entertainment subscriptions and savings.
Once you have both numbers as a starting point, try tracking your spending for a few months. You can do this in a variety of ways including collecting receipts or using online budget apps. The more you know about your financial situation, the more control you'll have.
Prepare for the Future
In building a household budget, it's crucial to include seasonal expenses. Even if there are parts of the year where you spend more in any category, plan for these expenses in your regular budget. Examples of seasonal expenses include holiday gifts, summer childcare, travel and weather-related utilities.
While these are only a few basic tips for household budgeting, they should get you started. The more practice you have tracking and managing your expenses, the easier it will become.
About the Author
Ryan Mandigo
Ryan Mandigo is an award-winning professional broker associate with Omni Real Estate. Originally a native of New Hampshire, his love of real estate began 30+ years ago while swinging a hammer on a framing crew. He has always had a strong passion for helping people, whether it be assisting a couple in purchasing their first home, finding a home that fits a growing family's needs, or downsizing for those with an empty nest. He strives to build strong personal and professional relationships with being a true believer in the power of positive thinking and always willing to lend a helping hand.
He is also a co-founder and board member of the Swing Fore the Kids organization. A local charity that is 100% nonprofit and their sole purpose is to help needy children and young adults within Horry County communities. He finds great satisfaction and pleasure in seeing how working hard for a great cause and raising funds can help others in need. He is also on the Board of Directors for the Waccamaw Youth Center in Conway, where their mission is to provide at-risk youth "A Place To Call Home"
When he is not working, he enjoys music, working around the home, spending time with family and friends, turning wrenches on vintage vehicles, getting some wind therapy on the Harley or chilling with their dogs.
Some quotes he lives by - "Do what you like and like what you do" - "You have to be odd to be number one" - "Dreams don't work unless you do" And one of his favorites. "Positive and enthusiastic thinking in all you do"
