A budget is a great tool to manage the costs of your first home – and we’ve got just the budget template for you!
As a first home owner you don’t just need to adapt to living with a home loan. There can be a whole variety of other costs you need to allow for that you maybe didn’t have to worry about in the past, such as insurance, maintenance, repairs and council rates.
Managing it all can seem like a financial juggling act. That’s why a budget is so handy – it can help you stay on top of how much money is coming in and what you need to spend it on.
Understand your spending patterns
If you’re not familiar with how a budget works, it’s basically a written plan that helps you understand how much you earn, and where the funds are going.
Our Budget Planner helps make drawing up a budget easy. The key is to know exactly what you’re spending on – it may be easy to recall your major bills but it pays to sweat the small stuff because low-value everyday purchases can quickly add up.
Keep a spending diary for a week or even month to really understand where your cash is going. Make a note as soon as you’ve paid for a purchase – even small expenses like train or bus fares, to build a complete snapshot of your spending habits.
Look at where you could save
Once you know where you money is being spent, you can fill in the blanks on your budget. And that’s when it becomes easier to see where you are overspending – especially when you take a look at the figures over the course of a year. A daily coffee costing just $3.50 for instance could be setting you back $840 annually! Plugging these spending leaks can help you save money – that’s extra funds you can use to help with the costs of owning your first home.
Look for a better deal
A budget can also highlight areas where you may be able to save just by shopping around for a better deal. If your power bills seem unnecessarily high for example, try comparing between providers to see if you could cut costs with a cheaper energy plan. Every dollar you can save on unnecessary spending is extra money that can help you enjoy your first home without having to scratch for cash.
Budgeting isn’t just about saving money. A household budget also allows you to plan ahead, so you can see which big expenses are looming and decide ways to manage your cash to meet them.
Download Aussie’s Budget Planner today for a better perspective on where your money goes each month.
Navigate to the next article
Ready to keep learning?
Almost 30 years of home loan expertise, delivered to you monthly
Take the next step to buying your first home
- Chapter One : Getting started
- Chapter Two : Your dream home
- Chapter Three : Money matters
- Chapter Four : Ways to purchase
- Chapter Five : Understanding interest rates
- Chapter Six : Understanding home loans
- Chapter Seven : Lending sources
- Chapter Eight : Getting your loan
- Chapter Nine : Choosing a home
- Chapter Ten : Steps to settlement