If you are planning to buy a house, you need to deal with the big numbers and prepare your budget first. The budget is a program that shows weekly, monthly or annual income and expenses and helps you control your income. Once you know the difference between your income and your expenses, you can make a detailed plan for saving to buy a house.
When you feel that you need more information, you can find answers to your questions by visiting the real estate timeline page and seeing all the steps in buying real estate!
How do you calculate your budget?
Therefore, you must do the following:
- Determine the income that you can include in your budget: Calculate the income of all disabled adults.
- Add the family income: therefore, put in the net income credit, not the gross income. And in fact, the net income is the income that reaches you after deduction of insurance and taxes. Usually, it includes sources of income: salaries, bonuses and commissions, profits or shares, alimony, unemployment benefits, social security, disability, veterans, etc.
- Determine your expenses: some expenses are fixed and others are variable, and may be regular or periodic.
- Fixed expenses: These expenses are repeated regularly (mostly monthly) without significant changes, such as rent or bills. These expenses are a discretionary list.
- Variable expenses: These expenses are optional and you can control them, such as clothes, movies, gifts, coffee, etc. Of course, these expenses may not necessarily be useless, but you can still control them.
- Periodic expenses: These expenses are repeated several times a year. For example, some people pay their health insurance not by city, but by year. Remember to include these expenses in your budget as well, otherwise you may have to spend your savings or get a loan. To calculate these expenses, according to the annual expenses and divide by 12 to know the amount that you must allocate for these expenses of the whole city.
You can prepare the table as shown below and compile the expenses, dates and classifications to control the price if necessary.
Is budget difficult for you?
If you feel that you are not in the mood to prepare a budget, consider the following tips.
- Don’t make it too complicated: our verbs are easier for you. If you love writing by hand, do the same thing. You can even hire different applications. You need to strictly control your expenses. Even small differences will help you a lot in the long run.
- Be flexible but careful: if you can’t stick to your budget plan, make changes! The budget must first be reported on the correct income and expenses. Try to think about your long-term goals, because while controlling your expenses today, you can buy your dream home in the future.
- Celebrate small successes: Be happy with any goal you reach. However, the way to reach the big goals goes through these small goals.
- Know your weaknesses: Anyone can have hobbies that make it difficult to control spending. For example, coffee, clothes, music, movies, etc. Pay attention to these things. Try not to spend as much as possible.
- Remember that budget preparation does not lead to self-destruction: it should help you, not hurt you. Make a realistic plan for yourself and don’t suddenly get rid of all your small expenses. Try to reduce expenses that you don’t usually use. For example, if you don’t usually watch TV, why do you have to pay for the whole city’s TV subscription?
Below is a sample table for the monthly budget statement, the following is a description of the different categories.
- Net income: In this section, enter the monthly income after the deduction of the tax.
- Total: This is the sum of all your income or expenses.
- Fixed expenses: Fixed expenses must be recorded in this section. There are two vertical sections in this column, the budget is written in the left column and the amount spent is written in the right column. This is a very important part.
- Variable expenses or variable expenses: It is necessary to record variable expenses that can be controlled in this section.
- Periodic expenses or periodic expenses: First, according to the method explained above, determine the monthly expenses for the periodic expenses, then register them in the fixed or variable part.
- Total monthly income: Compile the total monthly income and total expenses here.
- Estimated income: In this section, write down any remaining assets of my income after deducting expenses.
Control your spending
Usually, controlling expenses is easier than increasing income, so here are some tips to help reduce expenses. Don’t underestimate the strength of your mind and will.
- Reduce your regular bills: For example, you can sign up for a cheaper TV subscription, or reduce your monthly mobile phone bill. Even when you go grocery shopping, try not to buy extra food or eat out less. Our knowledge if there are cheaper plans for other bills such as water and electricity and so on.
- Anas Al-Amr: If you really want to buy something from us, then sleep. When you wake up in the morning, you may not even remember what you wanted.
- Assignment of duties to working hours: If the price is 10 dollars per hour and the device you want costs 200 dollars, then you will have to work 20 additional hours to buy it.
- Focus on your debts and savings: for example, consider that if you buy that car, it means that you have to rent for an additional city.
- Leave your bank and credit cards at home: take only the required amount and do not carry additional funds.
- Use the container method: put a certain amount of money in a container every week and stop spending when this amount runs out.
- Write down your goals on a small piece of paper in your wallet: this way, every time you open your wallet, you will see your goals and not waste them.
- Algebrax for the lungs: Algebras for the lungs to be used when you are under pressure.
- Below are the experiences of some people, their urban budget considerations, as well as their suggestions for controlling the budget and saving money.
Hector and Marisol
According to Hector and Marisol, they need to save for the first time, but they disagree on how to save. After going to the real estate consultant, they finally managed to formulate a simple plan for themselves. They say that if you don’t have extra money in your main account, don’t tend to spend. Their suggestions are as follows:
- You should think of savings as a bill that must be paid, so force yourself to deposit a certain amount in your savings account.
- If you receive a reward from the action, make deposits in your savings account.
- Deposit any additional money you receive, such as tax refunds, into Al-Tawfir’s account.
- If the installments of the car loan or the student loan run out, put the full amount of the money in the savings account of the city.
Kim and Marcus
Cant Kim and his sons Marcus Yassin to buy a house and make a budget to determine their expenses. Although they are not able to save money and they have to pass many of their wishes to buy a house, they can save a lot of money within their budget. Kim suggests that you develop a realistic plan and try not to deviate from it. Kim’s savings plan consists of three steps as follows:
- If you have a credit debt, pay 100 US dollars in one installment for 8 months, then pay off the entire amount.
- Save 50 dollars for all income for 18 cities.
- Review your plan for the whole city and make changes if necessary.