Common Household Budget Problems

 While things like rent, mortgage, groceries, insurance and utility bills are regular things on our household budget, there are some things that we simply sometimes forget about! If you’re in the process of putting together a budget for your household or if you’ve got a budget but you are still mystified as to where your money is really going, here are some things you may want to include: 

Household Repairs

We often don’t think about it, but often things around the home can malfunction or break – especially in older homes. You might end up with an overflowing dishwasher or a broken window. It’s important to set aside money in your budget for unforeseeable repairs, especially if you’re not rolling in cash. If you decide to sell your home, a conveyancer may request that you fix or upgrade certain appliances or fixtures before settlement, so it’s good to have extra cash for this too. 

Clothes

Clothes are a necessity for everyday living, but they’re often left out of our household budgets. When you consider work clothes, shirts, pants, jeans, skirts, dresses and shoes you begin to understand how buying clothes can significantly impact your finances. Make sure you budget for clothing and expenses, especially if you’ve got kids.

Transport and Petrol Costs   

Spending money on petrol each week? Or paying for a weekly bus or train ticket? Don’t forget to factor transport costs into your household budget, too. This may even reveal better ways of spending – could you spend $30 on the train each week, instead of $80 on petrol?

Car Repairs

On top of your car loan, registration and insurance, you should also set aside a bit of money for any car repairs. Car repairs are usually quite costly, ranging in the hundreds or even thousands. Having to fork out this amount of cash can be daunting. Ensure you save for car repairs to keep you out of any sticky money situations.

Family Activities

If you’ve got kids, taking them on family outings can sometimes be expensive. It can cost up to $100 to take a family of four to the movies or even out to dinner. If you enjoy family activities, it’s a good idea to budget for them, so the expenses don’t eat away at your spending money.

Tax Return Costs

We hate tax time! But if you get your tax return or other finances done by an accountant, you’ll also need to pay for their services. Budgeting your tax return fees into your yearly budget means a little more peace of mind when it comes to tax time.

School Expenses

You’re probably great at saving money for school fees, school supplies, books and uniforms at the start of the year, but have you taken into account any ongoing school expenses? Are there numerous excursions or school camps coming up that you’ll need to pay for? What about fees for school photos? Make sure you find out about and include all of your child’s yearly school expenses.

Christmas and Birthdays

Christmas and birthdays are usually a fun time of year, but if you find yourself drowning in “present debt” every time they come around, it might help to budget better. Could you save $50 a month, for instance, as a Christmas or birthday fund? This will keep you prepared when it comes to present-buying and means that you won’t blow out your budget during the Christmas and birthday months.

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Budgeting for Homeownership: Managing Your Finances Before and After Purchase

 

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Homeownership is one of the most significant milestones in life. However, whether you are still planning to buy a home or have already purchased one, it is essential to consider the financial obligations of owning a house. After all, you would not want to be one of the 90% of homeowners who underestimated the cost of acquiring and possessing real estate.

In this article, we will discuss budgeting for homeownership and offer tried-and-tested strategies to help you manage your finances before and after acquiring the keys to your front door.

Pre-Purchase

Before browsing property listings or attending open houses, you must lay a solid financial foundation for homeownership. Doing so sets you up for a more comfortable and worry-free time owning your prospective property.

1. Assess your financial situation

Take a comprehensive look at your current financial health. Is your income enough to finance a home? Are you under significant debt, which would otherwise impact your ability to put up a downpayment, pay mortgages, and make other expenses? Understanding where you stand will help determine how much you can spend on a home before, during, and after the initial purchase.

First, calculate your salary, expenses, savings, and debts. Home payments will naturally take up a considerable percentage of your income, but you want leftover cash for necessities, occasional wants, and other financial emergencies. Additionally, consider your income sources, including salaries, financial benefits from employers, and dividends.

2. Set a realistic budget

A sound budgeting plan is the foundation of responsible financial planning for homeownership. This process is not only about mortgage payments—you must also consider all homeownership costs, such as:

• Property taxes

• Home insurance

• Monthly utilities (power, water, gas, Wi-Fi connectivity)

• Upkeep and maintenance

• Renovations and redecorations

Ensure your income and budget account for immediate homeownership needs and long-term financial goals. As a rule of thumb, your housing spending should not exceed 30% of your budget, and lower is always better. Likewise, you could save for other hidden costs of buying a house to give your finances flexibility.

3. Save for a down payment

When you purchase a home, the developer or financing company will generally require a downpayment—an upfront lump sum significantly affecting your payment scheme. It reduces the amount you need to borrow by acting as collateral to receive more favorable mortgage terms, like longer amortizations or lower interest rates.

Aim for at least 20% of the home's purchase price to enjoy lower monthly payments and avoid private mortgage insurance (PMI), which protects the lender if you default. Also, remember that saving for a down payment requires cutting expenses and dedicating a significant portion of your income for this purpose.

Post-Purchase

Congratulations! You are now a certified homeowner. However, the financial responsibility of owning real estate did not end when you closed the deal. Managing your budgets afterward is just as essential to ensure an enjoyable homeownership experience.

1. Refine your budget

Although you have already set up a budget before buying your new home, it is an essential practice to refine it consistently. You will need to adjust your allocations to accommodate new expenses and avoid dipping into other savings when you need extra cash. So, continuously update your budget to reflect your current financial situation, especially after significant life events like getting a new job.

Also, now is a good time to increase your emergency fund. Add your monthly expenses to this reserve to cushion your finances, including your budget for homeownership costs, from unexpected payments.

2. Prioritize your mortgage

Monthly mortgages are likely your most significant costs, aside from being the most important. As such, it could be challenging to let go of a large chunk of your cash for this purpose. However, your home is one of your most valuable assets, so focusing on financing it in the long run is more beneficial.

Furthermore, prioritize paying mortgages on time to avoid spending your budgeted money somewhere else and risk defaulting on your obligation. It would not hurt to make extra payments when possible, as doing so reduces the total interest you pay over the loan's lifespan.

3. Monitor your credit

Your credit score remains crucial even after buying a home. A good score will help you secure better financing for future projects, like home renovations, landscaping, or land expansion. It can also present more agreeable refinancing terms for when you need a new mortgage to support your current one.

Follow your mortgage payment schedule to maintain a good credit score. Likewise, if you have other financial obligations, like credit cards, handle them responsibly and follow the agreed-upon repayment terms. Finally, avoid taking on new debts to keep them from overwhelming your financial plans and causing you to fail to pay mortgages on time.

Prepare Your Budget for Your New Home

Owning a home is a dream for many, but it comes with a sizable price and numerous financial responsibilities. As such, be sure to budget effectively before and after purchasing to have a successful time with your new real estate. Also, remember that it is a long-term investment so stay vigilant and adapt your budget as your circumstances change.

Responsible budgeting and financial management will help you experience the joys of homeownership and ensure your property remains yours for years to come. With the right strategies, this dream can finally be a sustainable and rewarding reality.

Your Guide To Decorating Your Home On A Budget In 2020

If you are moving into a new apartment or want to give your old one a new look, decorating on a budget can prove to be one of the greatest challenges. With all your funds planned out for expensive projects like remodeling, furniture, cleaning, and other homeowner investments, decorating seems to be the last item on the list and usually has to be done with very little.

However, if you do a little research you can find that there are plenty of affordable decorating and furnishing options to choose from offered by San Diego furniture companies such as D3 Home. We’ve compiled a list of tips to help you choose affordable yet effective decorations for your home.

image:pixabay.com/photos/living-room-country-house-furniture-1476062

Determine Your Budget

When planning your budget for furnishing and decoration, the best practice is to put your priorities first. Things like mattresses, seating, lighting, or dining will likely be the largest items on your budget. However, you need to remember to plan for accents, decorations, and items such as rugs, flower pots, art, and others. Otherwise, you risk going over your budget once you realize these items can also pile up on your furnishing costs.

Find New Ways To Save

There are many ways to save on your furnishing costs, if you know when and where to look. If you are working on a budget, you should look for promotions and sales that can help you better meet your budget. Some of them include:

Holiday Or Seasonal Sales

If you are buying large quantities of home decoration items, you should wait for large sales and get a massive discount on all the items you need.

Thrift Stores

Thrift stores can be a source of well-preserved and affordable decoration pieces. If you are persistent enough you may be able to find anything from coffee tables and vanities to dining tables and bedroom sets.

Outlet Sales

Some items may have small flaws which while barely noticeable can significantly lower their prices. The best place to search for outlet items is the internet, as a lot of home furniture stores have a separate page for all their outlet items.

Switch Out The Accent Pieces

If you want to refresh your home, you don’t necessarily have to go on a huge shopping spree. You’d be surprised how much switching out the accent pieces can do wonders for giving your home a fresh new look. Replace your light fixtures and lampshades, add a few new pillows and switch out your rug and you’ve got a fresh new room to enjoy. You can even switch between old and new accent pieces’ season by season, making sure your home always stays fresh.

Create A Cozy Atmosphere

If you’re really working on a small budget, opt in for items that can help create a pleasant, homey mood for a very small price. Think items such as candles, live plants, fruit bowls. They can help set a mood by adding both a visual and a sense of smell.

4 Crucial Steps in Buying a House in Sydney

If you are planning to move to Sydney soon and buying a house is one of your top priorities, there are several things you should know to avoid any hassle along the way. At first, it can be quite challenging and overwhelming, but once you expand your knowledge on how stuff works, it should be a smooth-sailing activity. As it is, this article has listed down some reminders that you may find helpful when you start looking for a house to buy in the capital.

1. Know your budget – You cannot buy a house in Sydney if you don’t have enough budget – that’s how plain and easy it is. Hence, it is very important that you plan your budget. Know how much you can allot for mortgage payment and know how much is too much for you. Your budget will serve as the anchor when you negotiate with the home seller. It will also serve as your guide when choosing a house. When planning your budget, it is important that you consider several factors, such as your job security, income, other expenses, other financial responsibilities, and unforeseeable expenses like medical emergencies. Once you consider all of these factors, you can come up with a more realistic budget.

2. Study the current housing market – It is important to be wise buyer if you are planning to buy a house in Sydney. Because of the strategic and convenient location of this suburb, expect that the houses being sold in the area are nowhere cheap. Hence, it is important that you research about the current local housing market to know which type of house to get. By doing this, you would know how much an average Sydney house would cost and how much it would cost in the future when you decide to sell the house that you will buy. If you don’t have experience in doing market research, you can always ask assistance from real estate professionals.

 

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3. Know what type of house you want – Since the Sydney housing market is continuously improving and evolving, you are likely to find a house that you’ve been dreaming of for years. There are many types of houses you can choose from – from split level houses to granny flats. In order to learn more about which type of house is best for your budget and needs, you can always seek the advice of homebuilders. If you wish to have a granny flat, you can ask granny flat builders around to have a better understanding on how much money you have to allot for its maintenance and improvement. The same goes to any type of house you may end up choosing.

4. Contact real estate agents – The best and most convenient way to find and buy a house is to hire real estate agents. These agents know the local market and have expansive network of home sellers. Simply put, they are the ones you should approach if you want to buy a house that will suit your budget, your preference, and your needs. Real estate agents will not only help you find a house to buy but will also mentor you when it comes to all things related to real estate in Sydney. They will also assist you in preparing and filing necessary paperwork, making your home purchase much more convenient and less stressful.

Buying a house in Sydney should not be a daunting and overwhelming task. If you do the right thing and follow the right steps, you can choose the best home. If you have more concerns or questions, it is always a good idea to consult with real estate agents, granny flat builders or any homebuilder, or even your colleagues who have more extensive experience in buying Sydney houses.

How to Choose Bathroom Fixtures

Several decades ago, bathroom fixture designers didn’t have much to do as they used to come in a couple of styles, colors and materials. This means that buyers usually didn’t have to think hard when equipping their bathroom with fixtures. Today, they come in a multitude of styles, and you can find a wide variety of fixtures that will match your bathroom décor perfectly. However, too many choices can cause a real headache, especially when doing the complete bathroom overhaul. They are the “crown jewels” of every bathroom so select your fixtures wisely. They range from luxurious to budget-friendly so let’s see some tips on how to choose bathroom fixtures that will suit both your style and budget.  

 

Image:www.roomsketcher.com/blog/latest-bathroom-trends/

Replacing the old bathtub and sink or not?

Before choosing the suitable faucets, have a look at the condition of your sink and bathtub - you need to decide whether you’ll replace them along with the other fixtures.  If yes, you’ll need to decide which features they’ll have and consider the size and the style of the bathroom first. The choice of fixtures heavily depends on the sink, bathtub and shower. If you want to do a complete bathroom renovation, make sure that you choose major items such as bath carefully – smaller fixtures are much easier to replace. You should have a look at numerous pre-matched ideas to find out what fixtures would look best on your sinks and bathtub.

Set the maximum budget

Before setting out to do some serious shopping, know your budget. I already mentioned that fixtures go from extremely pricey to low-budget. Don’t think that less expensive fixtures necessarily mean bad quality – you can find elegant plumbing fixtures of decent quality that will match the rest of your bathroom at relatively low prices. Look at the prices and try to decide on the whole fixture set before actually making a purchase – this will help you to stay within your budget limits. If on a tight budget, look for wholesale deals or find “damaged” fixtures sold at discount prices. These are fixtures with minor, often invisible imperfections.

Make a decision on the style

Most people will put aesthetics before functionality and this is crucial in most purchases. This is not such an easy task as it may seem: color, shape, type of handles, single/dual lever, hands-free options… there are lots of things to consider. With all possible colors and designs, making a choice is truly a challenge. Before you even start looking for suitable fixtures, think about your bathroom decoration style. Is it vintage, minimalist, ultra-modern, traditional or rustic? Heavily decorated bathrooms need equally ornate fixtures. Minimalist style is usually associated with chrome and nickel, and if you want a delicate look – bronze finish is a good choice. Your lifestyle is an important factor as well – if you have children or many occupants, stay away from sensitive finishes (such as previously mentioned bronze).

Choosing a faucet

There are many types of fixtures, but faucets are the highlight of every bathroom. If you already have a sink, make sure that faucet matches the hole openings. The most common type of sink is the one with three holes. Depending on the type of the sink, you can choose a single-hole faucet, widespread mount, or center-set that matches a three-hole sink. Single-handle faucets are the best choice in most cases as they have a plate that hides the extra holes. Make sure that the style and finish match the other fixtures such as towel bars and robe hooks – these small details won’t go unnoticed. We recommend a combination of single level/ceramic valve faucets (because of their durability) and a metal pop up instead of knobs.

How to choose a perfect finish

A finish is the surface of the exterior parts of the fixture that gives it its color. There are numerous finishes to choose from that not only give fixtures different colors, but they are of the different durability as well. The basic and most common finish types are nickel, chrome and brass, but a bit more luxurious options can be found on the market, such as oil rubbed bronze or satin gold. PVD finish is one of the most quality and durable ones as it’s almost fully scratch resistant. Various finishes can have PVD characteristics (so you can choose any color you like: steel, nickel, brass and so on). Make sure that you choose plated surfaces: chrome is often applied over faucets to protect them from corrosion.