Tips For Planning A Monthly Budget

August 5, 2022

If you are a first time buyer looking to apply for a mortgage, it is important to make a realistic assessment of your finances. This will help you to understand how much you can afford to repay on your mortgage each month, and it is also an opportunity to boost your credit score, which will give you more chance of securing a good rate.

A budget will also help you meet any debt repayments, or save towards a mortgage. The key to putting together an effective budget is to avoid making estimates whenever possible, and look at your bank statements and receipts dating back from at least three months. Where you do have to guess, over rather than underestimate.

The main aim of your budget should always to avoid spending more than you earn, and preferably to have some surplus cash at the end of the month. If you need to cut back, look at your non-essential spending first. Could you cancel a subscription to a TV streaming channel, or eat out less, or buy fewer new clothes, for example?

Next, look at your essential spending, on utility bills, food, insurance, and so on. For services such as broadband, insurance, and energy, you have the option of shopping around for cheaper deals, so this may be worth doing.

Look around for deals when making your weekly supermarket shop, such as discounted food that is close to its sell by date. It often works out cheaper to buy goods with a long shelf life in larger quantities, such as pasta and cereals.

Finally, don’t forget to include those extras that crop up, such as birthday treats, holidays, or car repair costs, and allow some margin for them in your budget.

If you are looking for a mortgage broker for defaults, please get in touch today.

Your home may be repossessed if you do not keep up with your mortgage repayments.

Back to Blog
;window._klOnsite = window._klOnsite || []; window._klOnsite.push(['openForm', 'R6NsLH']);