Prepare Your Monthly Budget

If you're planning to buy a house, it is time to pencil in your monthly budget.  Your budget will help show you how much income you have coming in, what expenses are going out, how much you are putting aside for savings, and how much extra money you have left after your bills are paid.  The extra money is called “disposable income”.

If your income is too low, can you find ways to earn more income?  If your expenses are too high, how can you cut out some of them?  If you have credit cards and other consumer debt, how can you pay them off?  How will you put aside money and save up FUNDS to buy your home?

If you don't know what your monthly expenses are, then you need to start tracking your expenses.  Get a handle on your expenses by keeping receipts for everything you spend and put them into a box or folder.  At the end of the month, tally up your expenses.  It only takes an hour or two each month to calculate your budget.

Read more in our book, "Buy Your First Home", http://preview.tinyurl.com/cs4724e.