Financial Planning

Financial Planning is key when purchasing a property

Are you purchasing a new home?

Your house is in all likelihood the biggest purchase you’ll ever make in your life, so it’s vital to get every aspect of the purchase right. First and foremost, you need to construct a financial plan that works for you. The last thing you want when purchasing a new home is it’s actually over your budget leaving you struggling to manage.

To make things easier, we’ve gathered together some of our top tips when it comes to constructing that all-important financial plan, leaving you safely in the black.

Get Organised – In order to begin arranging your financial plan, you need to first invest a little time gathering all the necessary information. Gather information from all of your accounts. You might want to put an hour or two aside in order to do this in order to give yourself time to be thorough. This isn’t something you’ll want to rush.

Work out Your Income – Give yourself a good idea of your monthly salary by looking at just what you bring home from every area. When looking at salaries, you might also want to consider things such as shares and bonds too.

Ascertain Outgoings – When you’ve gathered your monthly income, you’ll then want to look at your monthly outgoings too. When doing this, you’ll want to take into account absolutely every single expenditure. From your credit card bills to your morning Starbucks. This may take a while so prepare to spend some time on this. You’ll probably find yourself quite surprised at just how much you spend each month.

Compare both – When you’ve worked out just what’s coming in and what’s going out, you can then work out exactly what you’re left with at the end of the month. Simply subtract your spending from your income and you’ll find exactly what you have left.

Make a Budget Plan – Once you’ve carried out each one of these vital steps, you’ll finally be able to formulate a financial plan for yourself. There will of course always be a number of expenses that you won’t be ale to change however there will be areas where you can cut back. Look at these in particular and begin to make those changes. Perhaps giving up that morning latte on your way to work each day or your monthly magazine subscription. You’ll be surprised at just how much this all adds up.

We hope you enjoyed the article and its helped you when purchasing a new home.  Do you have any tips for other buyers purchasing a property? Leave a comment below and share your experiences.