You’ve got that first home buying fever; the excitement is real. In a perfect world, we could just make this big decision and hit the green button. However, there’s a bit more that goes into the home buying process, and we are firm believers that prior preparation for this big decision really goes a long way to ensure you have the smoothest buying journey achieving your goals!
Over this blog series we will go through all the stages of the homebuying journey so you can understand what to expect and make that plan as robust as your new home. Part 1 of this series is focused on tips to help you build a budget, so you can save up for your first home purchase.
How do I build a budget as a first home buyer?
Buying your first home and budgeting go hand in hand. So, what does a budget do? Your budget helps you to establish where your money is going and where it is needed, allowing you to create a plan towards your goals based off your current financial situation. Below is a list of steps you could take to help build your budget. You can also download Frollo to create and link your budget to your SCCU bank .
- Record your income. Tip: record in the frequency you get paid. If weekly – record everything in their weekly amounts.
- Add up your expenses. Tip: make sure to include a buffer for unexpected expenses as well, such as medical needs, unplanned car repairs and the like.
- Set your spending limit. Tip: set limits within your budget for your spending, for example, ‘Gifts – $100’ or ‘Takeaway – $100’ and stick to it. The money you have left over after your expenses are covered is for your spending and saving.
- Set your savings goal. Tip: after you have worked out your income/expenses define how much you will save and separate that money first. Consider a high interest savings account such as our Star Saver.
- Adjust your budget. Tip: track each category. Are your expenses going up? Do you need to pay off more debt faster so you can save more in the longer term?
- Help make budgeting easier. Tip: one way to do this is separating your money needs across transaction and savings accounts, or multiple Easy Access. Turning your spending, savings, and expenses into bucket categories. By doing this early you can have your offset accounts ready to go once you commit to a .
Get started now by using our monthly expenses calculator (link to expenses calculator) and savings growth calculator (link to savings calc) to work out where you’re at now and where you aim to be as a first home buyer.
Stay tuned for the next part to this First Home Buyers series! Our following blog will go through government grants and schemes available to First Home Buyers.
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Southern Cross Credit Union Ltd 82 087 650 682 AFSL 241000. Any advice is general advice only and does not take into account your objectives, financial position or needs (your ‘circumstances’).
