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Budgeting Tips for Home Buyers in Pierce County

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Buying a home is one of the largest financial transactions you will make, and preparing your budget beforehand will help make the home buying process in Pierce County less stressful. Here are 3 budgeting tips for home buyers in Pierce County.

Budgeting Tips for Home Buyers in Pierce County

Organize your finances

By breaking down your monthly spending into rent, utilities, shopping, groceries, extracurriculars and savings, you’re able to see your areas of strength and areas of weakness. For example, say you are spending $1500 a month on rent, $200 a month on utilities, $1000 a month on shopping, $500 a month on groceries, $150 a month of extracurriculars, and $100 a month on savings. When you put all of these data points into a pie chart and you’re able to visually see that you’re spending almost 30% of your monthly bills on shopping, when half of that could go into your savings pot. By walking through your finances one step at a time, you’re able to track what you spend and make goals to increase your savings.

Set goals

While your large goal is to buy a home, setting smaller goals will help you stay on track and feel successful while you make your way there. If your goal is to set aside $500 a month into savings, how are you going to get there? Consider these methods:

  • Switch to a cheaper gym. Gyms can be extremely expensive, and especially so if you aren’t using them as much as you’d like. Do some research on less expensive gyms, and look into home workouts so you can see if you can cut that cost out all together.
  • Cancel cable during the summer. Television usage drops dramatically in the summer due to vacations, spending time outside, and spending time with loved ones. Consider cutting your cable bill just for 3 months (granted you’re not in a contract), and watch your savings increase those three months.
  • Limit restaurant visits to once a week. Restaurant bills can add up, especially if you’re buying appetizers, drinks, and desserts. Make it a goal to only eat out at a restaurant once a week, and make your own meals the rest of the week.
  • Make your own coffee. The average Starbucks coffee is $5. Imagine if you cut that cost out of your monthly spending. A bag of coffee ranges about $20 a bag and lasts about a month. That’s a savings of $135 a month just on coffee alone.

Track your progress

While it’s great to make goals, they don’t mean much unless you track your progress. The most important budgeting tip for home buyers in Pierce County is to keep yourself accountable. If you make a purchase that wasn’t planned for, add it to your budget and readjust your goal for that month. It’s ok to make an extra purchase here and there, just as long as you can stay on track for the coming months. As a home owner, there are many unplanned costs that come up, so getting into a habit of budgeting now will prepare you for these financial challenges that inevitable pop up.

You may also like: 7 Steps to Buying a Home in Pierce County.