Sarah Neudorf October 5, 2020 Budget
Adjust your Budget: Firstly your mortgage - you have several options here. You could increase the term of your mortgage, making your monthly payments lower. You could take a further advance and use the money to pay off your much more expensive credit cards - it is important to get rid of your most expensive debts first. Next check that you are with the cheapest suppliers for gas, electric, telephone and internet - it is not much trouble to switch and you could save a lot of money.
It does not take much for you to get behind on monthly bills, but it sure takes some time to catch up. The comparison in my mind is to weight gain. A one-week vacation can easily pack on 5 to 7 pounds. Losing that weight however, can take a good month of cardio. That is no fun, and neither is trying to find the extra cash to pay last month`s credit card payment.
The financial planner will help you to determine which payments require regular payments and to build up reserves for unexpected payments. The regular payments include; rent payments, grocery purchases, tuition payments, credit card bills and general upkeep expenditures. It is wise to note that everyone has varied financial needs, and you should, therefore, structure your budget to include all your personal expenditures. Hospital bills are one of the payments which are unexpected because people do not plan to fall ill. Once you have calculated your regular expenditure, you can create a reserve amount to cater for unforeseen payment requirements.
When considering housing expenses, you may be over your limit. An average target is 35%. If you own your home, you ca not just sell it and move back with Mom and Dad to save money and refinancing may cost you more in closing costs than you are actually saving. If you need a little extra in one part take it from another. Reduce some of your more flexible expenses like a cell phone bill or clothing costs. Find a less expensive plan and shop the sales at the department stores.
Use a mortgage calculator to research all various options open to you before agreeing to refinance your home. Once you feel you have the right balance and are happy with the kind of mortgage rates available, take the results to the meeting you have with the mortgage lender. Showing him the mortgage calculator research indicates that you have thought seriously about this and where your proposed figures come from.
Budget Calculator - Getting Started: It is probably a good idea to collect your last twelve months bank statements to make sure you do not forget to include all your quarterly and annual bills. Collect the records of all your income, including investment income and interest on savings. Your expenses fall into several categories - some are unavoidable, some are discretionary and some are unexpected. Your unavoidable expenses include things like mortgage or rent, electric and gas and of course food. Discretionary expenses are things like eating out or a day at the spa. Unexpected expenses include things such as repair of an essential household appliance or a new boiler.