Buying a home will likely be one of the biggest financial transactions you make, and preparing your budget beforehand makes the home buying process much less stressful. As you start thinking about a down payment plan, I wanted to share a few suggested budgeting tips that may be helpful before you make the big transaction.?
- Organize your finances:?With your finances categorized and organized, you can start to set goals for how much you need to save, and for how long, in addition to where you need to cut back.
- Do the math:?Before you set any home-buying goals, do the math to figure out how much you can afford. This will also dictate how much you need to save.
- Set goals:?While the overarching goal is to buy a home, setting smaller goals – whether they are focused on saving or cutting back on spending – will help you stay on track and feel successful while you make your way there.
- Write your budget:?The math has been done, goals have been set and now it's time to write your monthly budget, which should take into account: total to be saved each month, life expenses, and any unusual expenses for the month.
- Update weekly;?Reassess regularly:?The final step is holding yourself accountable to your goals and regular updates of the budget. Remember that a budget is fluid, and there are many “life things” that will come up. That’s okay, as long as you stay focused on the goals you’ve set.
Feel free to reach out if you have any questions, or if you want to chat more about navigating the financials of the current housing market as a buyer.