Austin Realty Group
David Metzdorf, Austin Realty GroupPhone: (617) 905-6061
Email: [email protected]

How to Build a Household Budget

by David Metzdorf 09/29/2022

The financial aspects of buying a home don't end with the purchase. Home ownership comes with its own ongoing fees and future expenses you'll need to prepare for. The best way to do so is to establish a balanced household budget. Here are some tips for how to get started:

Set Your Goals

Once you have a clear idea of what's important to you, managing your household budget won't seem as daunting. The best place to begin is by identifying and setting some financial goals. These can be short-term goals like purchasing a new appliance or long-term goals like a large renovation project. Make a list of the most important goals for your household so you have a clear idea of how to manage your finances accordingly.

Identify Income & Expenses

Once you've established your financial goals, it's time to consider the actual numbers. The key to budgeting is to know how much money you have coming in and where it's going. Tracking income is typically as simple as consulting pay stubs or deposit statements. You can also include other income like tax benefits and commissions.

Then, identify what you spend your money on. Try making a list with various categories to separate annual, monthly and everyday expenses. In addition to things like groceries, utility bills and transportation costs, make sure to include things like credit card payments, entertainment subscriptions and savings.

Once you have both numbers as a starting point, try tracking your spending for a few months. You can do this in a variety of ways including collecting receipts or using online budget apps. The more you know about your financial situation, the more control you'll have.

Prepare for the Future

In building a household budget, it's crucial to include seasonal expenses. Even if there are parts of the year where you spend more in any category, plan for these expenses in your regular budget. Examples of seasonal expenses include holiday gifts, summer childcare, travel and weather-related utilities.

While these are only a few basic tips for household budgeting, they should get you started. The more practice you have tracking and managing your expenses, the easier it will become.

About the Author
Author

David Metzdorf

Graduate of Burlington High School and UMass Dartmouth. Married with three children to my High School Sweetheart. Multiple years of sales experience including, twenty six years as a full time Real estate agent, fifteen years in the fine wine, spirits and beer industry.

Dale Carnegie sales graduate, certified buyers representative.  Multi Million dollar achiever and Top producer in Real Estate. Burlington Mass resident for 50 years. Former college Basketball player and also coached  Baseball, Softball and Basketball as well as taught CCD. Father to Father and Mother to Mother former member. Burlington Volunteer for a variety of events including Pride Day, Truck day and Fourth of July events.

A portion of each sale David makes is gifted to a local charity.