Budgeting Tips

  • Identify the maximum mortgage payment (including property taxes & Insurance) that you are comfortable making before you begin to meet with Lenders to get pre-approved. Consider your current housing expense and whether you have monies left over each month and are able to save.
  • Identify how much you can spend vs. how much you want to spend on housing
  • Remember, you are qualified using your gross monthly income, but you must live on your net monthly income
  • Only your minimum monthly installment/revolving debt is used to qualify you yet your personal budget will include utilities, food, day care, auto maintenance, etc.
  • Work on eliminating revolving debt with a goal in mind to only charge what you can pay off each month
  • Put your $’s to work – calculate just how much you are paying monthly in credit card interest
  • Educate yourself
  • Plan for future expenses which must include the unexpected
  • Pay yourself 1st! Save and pay cash for all planned purchases
  • Track your spending (every cent) for 3D-days to see where your monies are going
    1. Non-discretionary expenses- housing, auto loans, credit card payments, student loans, day care, etc.
    2. Non-discretionary expenses with variables – groceries, clothing, hygiene, etc.
    3. Discretionary expenses – cable TV, lattes, movies, eating out, getting your nails done, etc.

Use the following links for more helpful tips and resources:

Goodbudget: Budget and Finance App on Google Play

Guidance on Creating Budgets

Simple Budget Template