Items to Include in Your Budget
The previous article covered expenses involved in owning and maintaining a home. This week (yes, I know we were going to go over homebuyer classes, but I got ahead of myself), let’s take a look at current budget items for potential homeowners.
“Knowing where you are is a good way to get to where you want to go.” Mama Yas
What Is Income?
Income includes all of the money coming into the household, from all family members eighteen years or older.
Begin saving pay stubs, bank statements, divorce and separation decrees, disability, social security, and insurance award letters. You’ll need these documents when you apply for a mortgage loan.
Income Items for Your Budget
- Take Home Pay/All family members
- Child Support/Alimony
- Pension/Social Security
- Disability/Other Insurance
- Interest/Dividends
- Other
- Total Income
(Add the amount of all items to determine your total monthly household income before taxes and other deductions.)
Preparing to Compute Your Expenses
Gather together receipts and bills from several months to compute your monthly expenses. When you can, it is always better to use a factual amount rather than guessing or estimating expenses.
Set up manila folders for rent receipts with a copy of the related check or money order stub attached. Include folders for pension contributions and statements, savings and checking account statements, car payments, pink slips for vehicles you buy or sell, credit card payments, and student loans.
