Budgeting For Buying Real Estate – Part 1

January 1, 2009 By 6 Comments

When you are trying to save money for a new home or property the best thing that you can do is put yourself on a budget and stick with it. If you are ever going to be able to save money you will need to do this.

The Master List

There are a few different things that you will need to consider when making out a budget. Start by listing the following things:

  • List your income – make a list of all the income that you get in a month. This should include your salary, any interests or dividends from shares, disability money, child support, spousal support or anything else that brings money into your home.
  • List your unavoidable expenses – this would be things like rent, car payments, spousal support, child support, insurance, loans, and other things that can not be negotiated. This is a list of all the expenses that you can count on having to pay every month.
  • List your avoidable, or disposable expenses – this is a list of expenses that you have some control over such as clothing, food, entertainment, cosmetics, eating out, and gifts given.
  • Make a list to see what is left over.

Financial Clarity

By making the preceding lists it will help you to see what your spending habits are and determine where you can make some changes and where you can scale back a bit in order to save even more money. The value of making a budget and sticking with it will be seen when you are able to save more money and get the house of your dreams as a result. This exercise can also help you to save up for other important things, such as college expenses, vacation money or even a new car.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 – 2009

Comments

  1. Real Estate Finance says:
    January 21, 2009 at 6:44 pm

    Hi the only way to survive is keep a strict budget, it takes a while to see results but stick to it and budgeting will work, I put all my coins away for 1 year and in December I always have more than $1200 this is not part of my budget and acts like a yearly bonus, its is amazing how much you can spend in change with out realising.

  2. Jazz Salinger says:
    July 26, 2010 at 12:00 am

    Hi Sean,

    This is also great advice. You have to write down a complete financial picture of where you’re at currently before you can expect to make any changes. You have to be honest and realistic.

    This way you’ll be able to see clearly where you can save money. I think it’ll be easier than you think.

Trackbacks

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