Tanya Tanimoto's Blog
A lot changes when you move into a new home. For the first few weeks you’ll most likely be focused on getting everything arranged and put away in their proper locations. You’ll be adjusting to your new work commute, meeting the neighbors, finding out where to shop, and so on.
It’s easy to forget about updating your budget during the first couple of months in your new home. However, if you want to be mindful of your spending and gauge the true cost of living in your new home, it’s essential to start tracking expenses and creating your budget as soon as possible.
In this article, we’re going to show you how to make a new budget for your new home so that you can start accurately planning your long term finances. That way, you and your family can rest assured that you aren’t living above your means in your new home and can stop stressing about spending.
Cost of living changes
When most of us move we think about the change of our mortgage payments, property taxes, and home insurance. However, there are several smaller changes that will occur in your day-to-day spending habits that you might not think to update in your budget.
First off, make a note of how much you’re spending on transportation (whether it’s train fare or gas for your car) in your new home and adjust this on your budget. This is hard to predict before you move since you can’t be sure of the traffic patterns until your first trip to the office.
Next, make a list of your monthly services, including utilities. We’re talking about internet, cable, trash and recycling, heating and electricity, and so on. At the end of the first month, add each of those to your budget and decide if you want to spend less on any of them.
One surprise expense that many people have when they move is the cost of internet. Your old plan at your former residence might not cut it if you move to an area with different coverage.
Furnishing your new home
Even if you’re moving with most of your furniture and appliances, there will likely still be expenses that you’ll need to plan for in your new home.
It might be tempting to make all of these purchases at once so that you can feel like your move is “complete.” However, the best course of action is to include these items into your monthly budget so that you are prepared for emergency expenses.
Decide which items you need the most in your new home, and prioritize purchasing those on the first month. You’ll likely realize after just the first couple of nights in your new house which items you need now and which can wait.
Budgeting apps and tools
Everyone has their own preferred method of record-keeping. Some people keep their budget in a notebook or planner, whereas others like to use an app that they can access on their phone or laptop.
There are dedicated budgeting apps and web applications that link to your bank account and tell you how much left you can spend that month and if there is an issue with your budget. Several such apps are available for free in both Android and Apple app stores.
For a simpler budget, you can simply use the spreadsheet application of your choice (Excel, Numbers, and Google Sheets are all sufficient).
Regardless of what tool you use, make sure you check in on your budget frequently to ensure you’re sticking to it and making adjustments as needed.
Saving for a down payment on a home is a long process that requires discipline and organization. But we all know that with so many other things going on in our lives it can be hard to spend enough time focusing on your budget.
Fortunately, there are several tools available to soon-to-be homeowners who want to keep track of their spending and make sure they meet their down payment goals. In this article, we’re going to talk about some of the best budgeting apps, websites, and other tools to help you keep yourself accountable so you can be living in your new home as soon as possible.
Why budget for a down payment?
If you’ve saved money in the past for a purchase without a budget you might be wondering why you should go through the effort of creating one now.
However, there are many reasons to have a budget, especially if you’re planning on making an investment as large as a home. Here are just a few:
Keeping an accurate budget will let you know almost exactly how much you can expect to save for a down payment
Budgeting helps you locate and cut out expenses that would be better used in your savings account
Budgeting will give you peace of mind along the road to saving for your down payment
Now that we’ve talked about the importance of making a budget, let’s talk about some of the best ways to get it done.
You Need a Budget, often shortened to YNAB, is one of the most useful tools for learning about and creating a budget. I don’t know about you, but I was never formally taught how to budget in school. But, it would have been a useful class to have!
YNAB combines budgeting tools with educational materials to help you save while you learn more about managing money. It can be easy to feel lost when it comes to learning about personal finance--that’s what makes YNAB so great.
Their basic precept is that you “give every dollar a job,” meaning there won’t be any money in any of your accounts or in your paycheck that doesn’t have a purpose. That doesn’t mean you can’t spend money on yourself every once in awhile, just that you’ll have planned ahead for moments so you can manage them.
You Need A Budget is available for Apple, Android, on Alexa and in your browser.
Saving with your spouse
Planning a budget yourself is complicated as it is. But planning together with a spouse can be even more confusing. However, there are ways to effectively make a family budget to save for a down payment.
First, you should both make sure you have individual budgets to make sure you know how much money from each of your incomes can go into savings. Opening a joint savings account and having a certain percentage of your paycheck direct deposited into that account is a good place to start.
From there, monitor your savings for a month to see if you need to alter this number, and try to stick to your monthly savings goal.
- Buying in bulk: Some people swear by the savings they rack up by joining and doing their shopping at wholesale buying clubs. Others say it isn't worth the long lines at the checkout counter, crowded parking lots, and the fact that not everything is cheaper than at regular retail stores. Like any kind of shopping, though, it pays to compare prices and research the best deals. However, it's not unusual to save from 25% to 50% on a variety of commonly used household items, groceries, and other consumer goods.
- "Coupons" is not a four-letter word -- although some people act like it is. Clipping, printing, saving, and organizing discount coupons can be a bit of a nuisance, but when you add up the monthly savings, it's worth the inconvenience. Stores that offer double coupons and/or accept competitors' coupons can also help you chalk up extra savings. Taking advantage of advertised specials is yet another way to reduce your monthly expenses.
- Compare notes with friends and family. You can often pick up worthwhile money-saving ideas by simply asking people whose opinions you respect. Nearly everyone has discovered stores, products, websites, businesses, and strategies that have helped them save money. Sometimes the topic is also discussed on social media sites. Most people you know would be glad to pass along their money saving tips, insights, and techniques.