Resources

Homeownership brings financial stability, but it also introduces new financial responsibilities. A solid budget can help ensure you're not caught off guard by unexpected costs.

The first step is to track your monthly income and expenses. Write down every source of income, then list fixed costs such as mortgage payments, property taxes, and insurance. Next, factor in variable expenses like utilities, groceries, and transportation. This will give you a clear picture of where your money is going.

It's important to budget for maintenance and repairs. Experts recommend saving between 1% and 3% of your home's value each year to cover these costs. For example, if your home is worth $250,000, you should aim to save $2,500-$7,500 annually.

A helpful guideline for overall budgeting is the 50/30/20 rule: spend 50% of your income on needs (mortgage, utilities, insurance), 30% on wants (entertainment, dining out), and 20% on savings and debt repayment. This structure balances your lifestyle with your long-term financial goals.

Creating and following a household budget not only gives you control over your finances but also reduces stress and allows you to plan confidently for the future.