Wednesday, October 20, 2010
How to Figure Out Your Home Budget
Figuring out your home budget can be just about as hard as building a nuclear bomb. Many people do not even know how to keep a good budget as it is, much less figure out one that works well enough to save you money. Most of these people with problems solving their home budget are college students, or those who just got out of college, and are just starting out. It is very important to plan out your financial future before it happens, like during high school. It would be good to plan out a budget for college and what you plan on doing if you run out of money, or get low.
There are many different factors to consider when planning out a budget for moving out of your parent's house. Determine what your rent will be, find a place you would like to move into, and find out the monthly rent. Make a rough estimate of what all your expenses will be, you should estimate a little higher than you think. Make sure to include Bills, Food Costs, Transportation Costs, and any other expenses you may have. Find out what your income will be, make sure that you will be making enough to cover your expenses. If you cannot cover all the costs you need to increase your income, or cut the fat on your budget.
You must make sure that you have an emergency amount of money in your bank account. Enough money for at least two months of all your expenses, so you aren't forced to move back in with your parents right when you start out. Also a very good idea is to get advice from your parents and other successful adults about how to keep up with your budget. You must choose a good location, figure out what factors are important to you, like distance from home or distance from school. Once you take all these factors into consideration, along with cost, you will be able to make an informed decision about where to move out to.
For most young adults, this will be the first contract that they have ever signed. When you get the lease for the apartment and get ready to sign it, look it over very carefully. It's good to have an attorney or a professional look over the lease first, but if you cannot find or afford professional help; at least let your parents look over the contract before you sign. If you sign the contract without looking at it closely you could get stuck in some sort of contract that you will never get out of.
Another very important aspect of moving out on your own, and planning your new budget is to make sure the job you have is solid and reliable. The worst thing that can happen after just moving out is loosing a job you thought was going to last you for years. Without a source of income, and only a few months worth of money saved away, you will have to find another job very quickly. If you think that you could loose your current job at any moment, it is also good to keep a close eye on other businesses that may hire you. This way if you lose your job at least you will have a second one waiting.
Do not forget the key things to remember when figuring out your home budget. Determine the amount of your rent, and the cheapest place that meets all your requirements. Make a budget that includes all important and necessary costs, and make sure that your income meets this number. Have money tucked away for a rainy day, and make sure not to spend it. Most importantly of all, read your contract closely, do not get yourself roped into something you cannot get out of! Be careful, it's a wild world out there.