Lifestyle Budgeting: What Can You Really Afford?
Posted on: March 14, 2017 by Signature Insurance Group
You’re in the market for a new home, and you’re making a long list of must-haves. Like any sensible buyer, you want to ensure you get the most for your money. However, while you might be able to afford the home on paper, have you factored in the realistic costs of the lifestyle you currently lead? From vacations to children, there are plenty of other factors that will increase your monthly spending, all of which should be considered when house hunting. Therefore, in addition to protecting your new investment with a SoCal Home Insurance policy, consider the following lifestyle budgeting tips.
If you’re big on traveling, you will need to consider how much money you spend annually on vacations. Consider all that you want to see, how much each vacation will cost, and for how long you will be traveling. Factor in these costs to your monthly budget to see how much you can afford.
Starting a family.
If you’re buying a home and plan to start a family in the next few years, don’t just consider the amount of mortgage you can afford under your current expenses. Factor in daycare costs and then determine what your cash flow will look like. You may have to adjust the amount of home you’re looking to purchase, states House Logic.
There’s no point in purchasing a home if you’re going to be “house poor.” Factor in concerts, movies, dining out, sporting events, and more to your allowance. It’s important to get a feel for how much you spend on these activities prior to moving so you can plan accordingly. Therefore, it’s wise to get a budget tracker and see where your money goes each month.
Pools and landscaping.
How great would it be to buy a home with a pool? Before the dream becomes reality, add up the costs of pool maintenance and servicing, energy, and insurance (along with liability if you have small children). You may find that you’d be better off heading to the neighborhood swimming hole. Next, leave some room in your budget for landscaping. Unless you have a green thumb and can manage the lawns and flower beds yourself, you’ll need to hire a professional to keep them looking great all year round.
About Signature Insurance Group
At Signature Insurance Group we know how important it is to get the best rates and coverage for your assets. Call us today for more information on our Orange County Vacation Home Insurance at (855) 972-9437.