If you’re planning to move to a new home in the near future, you probably already have an endless to-do list. While there is a daunting side to making the move, it also comes with excitement too. It’s only natural to make plans and dream about your new property. In some cases, this can lead to looking at homes in and around Barnes outside your price range. Your new property will likely become your largest financial asset, so the estate agents at Trust Milo will ensure you get everything right.
One of the most important factors to consider when buying a new home is your maximum budget. The last thing you need during this process is to fall in love with a home you can’t afford.
In this blog, our estate agents outline 4 essential tips for budget planning ahead of your move in the Barnes area.
Calculate Your Income
Working out your totals for every income stream gives you a more accurate overview of your yearly earnings. For example, don’t simply look at your salary from work; consider any savings you have, investments and sporadic earnings too, such as dividends from shares.
Using a spreadsheet will make this process much easier. Not only does it allow you to separate the different income streams, you can make as any edits during the house-buying process as necessary.
Work Out Your Outgoings
Calculating how much you spend each month is just as important as working out your incomings. Like any reputable estate agents in the Barnes area, we strongly advise not guessing. Having accurate figures always makes for a more realistic and reliable budget.
The obvious sources for your outgoings include:
• Bank Statements
• Utility Bills
• Credit Card Bills
• Rent or Mortgage Costs
However, you should also think about the less frequent spending you do, such as:
• Birthday Presents
• Eating Out
• Car Costs
• Commuting Costs
As our estate agents advise all our clients in Barnes, you can add your expenses into another spread sheet for convenience. When you work out the difference between your regular and less frequent spending, you know how much you need to put aside for occasional costs every month.
Compare Incomings and Outgoings
With accurate figures for your monthly earnings and expenditure, you can work out how much money you have left. Subtract your monthly and annual spending from your monthly and annual income, and you will find out what the remainder is.
Needless to say, we hope you have a positive number. A negative figure represents a shortfall. As your Barnes-based estate agents, we cannot overstate the importance of making a budget plan with these figures. Even if you earn more than you spend, you don’t want to go into debt.
Create a Budget Plan
Having decided on a realistic financial goal, you can create a budget plan to achieve it. Of course, there are some costs you simply can’t cut. As such, focus on outgoings you can easily tweak – like making packed lunches and not visiting your go-to Barnes café every day.
Our estate agents know the hassle of moving all too well, so why not kill two birds with one stone and sell unwanted home items online? You earn some extra money and clear your home of clutter ahead of the move.
Larger-scale approaches include switching energy tariffs that could save you money. Likewise, look at your car and home insurance to see if you can find a cheaper provider.
It’s essential to monitor your budget plan during the first few months. If you struggle to stick to it, it’s always possible to re-evaluate in favour of something that works.
As your trusted estate agents in the Barnes area, Trust Milo is always on hand to find a solution tailored to suit your specific budget.