Having a budget in mind is always important so that you know exactly where your money is going and how you are spending it, especially when you are trying to save up for an investment property, your first home, or repaying a mortgage. By knowing what your budget is each month, you know exactly how much you can afford to save and whether your property goals are realistic in a specific time period.
It’s easy to find out exactly how much you spend by using our simple budget calculator which does the hard work for you. All you need to do is enter in your income, as well as all your relevant costs such as household, travel, medical, debts etc and you can discover your shortfall or surplus on a weekly, monthly or annual basis and go from there.
If it works out that you are short each month, you can then easily see where you are spending the most, and cut back if buying a property is your end goal. However if it works out you can save $1000 a month, you can then calculate how quickly it will take you to save a 10% deposit of say $40,000 on a $400,000 property and plan how else you can cut back your current spending to save quicker.
When looking to purchase a property, everyone that you speak to will be asking you about your finances, including banks and financial advisors. Getting these under control sooner and having a firm savings plan in place will allow you to show them what you can or can’t afford.
When you do have a budget plan in place, it is important to review this on a regular basis to ensure that you’re sticking to it and that everything is kept up to date as any change in income, bills or rent will need to be reflected in this.
Get more control over your finances today by using our above budget calculator.