Four Seasons Sotheby's International Realty
Four Seasons Sotheby's International Realty
MARIANNA VIS, Four Seasons Sotheby's International RealtyPhone: (603) 860-8115
Email: [email protected]

How to budget for home expenses: The basics

by MARIANNA VIS 12/26/2022

As a new homeowner, one of the first important tasks to accomplish is making a budget for home expenses. The homebuying process had a budget, but now it’s time to think about taking care of your home and enjoying it to the fullest.

To help you get started on making a household budget, here is a basic guide:

Identify your goals

Deciding on financial goals can be an excellent way to build your budget. Some examples of financial goals to consider might be paying off your mortgage early or financing a major renovation project.

List your expenses

Track your spending habits for a month to examine the details of your cash outflow. Include fixed expenses, like monthly mortgage payments and property taxes. Variable expenses like entertainment, maintenance and transportation costs should also be included.

Record your earnings

Figure out your exact income amount by listing all possible sources of money. This could include regular employment and also gains from selling or renting assets. For budgeting, use your net monthly income rather than gross monthly income to account for taxes.

Find your starting point

Once you have your total monthly expenses and net income numbers, you can do the math. A basic formula for finding a starting budget is: net income - total monthly expenses = monthly budget.

Expect adjustments

After finding your results, you may find opportunities to adjust. For example, you might want to set aside more money into an emergency fund regularly, or find ways to limit your daily spending.

These are only the first steps in creating a workable household budget to account for ongoing costs of homeownership. Use this process as an example for building your own personalized financial plan for your life in your new home.

About the Author
Author

MARIANNA VIS

Why be ordinary when you can be remarkable? 

Marianna Vis of Four Seasons Sotheby’s International Realty’s Bedford office has over two decades of real estate experience in the Bedford, New Boston and Southern NH area, with 1000+ homes sold, over half a billion in sales, and consistently placing in the Top .1% of New Hampshire Realtors® year after year. Facilitating over 41 million dollars in New Hampshire home sales in 2023, Marianna is also the number one Listing agent in the town of Bedford, NH again …and has been the top Agent for neighboring New Boston for over 11 years. And she has placed in the “Top 10” REALTrends list of America’s Best Real Estate Agents since 2019.