Draw up a New Household Budget for a New House
Category Buyer Advice
It's "tax season" - and a great time to get an accurate picture of your income and expenditure for the past year, and to get to grips with your financial and savings goals for the next 12 months, especially if you are planning to buy a new house of your own.
So says Berry Everitt, MD of the Chas Everitt International property group, who notes that the first thing financial experts recommend when you move to a new house is that you update your household budget," taking into account any job or salary changes, any changes in your household circumstances or lifestyle and your plans to reduce debt and boost savings".
Next, Everitt says, you should make sure everyone in your family is on the same page when it comes to your new house hold budget. "In most household budget planning, there tends to be one person who handles the finances, but it's a good idea for them to discuss the household budget and financial goals with their spouse or partner and older children at least once a year and get their buy-in and ideas for reducing spending and increasing household savings."
Writing in the Property Signposts newsletter , Everitt says financial experts also note that it is always a lot easier to save if you have a specific goal, such as building up an emergency, travel, university or retirement fund - or getting the deposit together for a new house purchase. "However, they also point out that it is generally a good idea to pay off debt before trying to grow savings - because the interest paid on most savings accounts is lower than the interest charged on most debts.
Author: Barry Davies