How to Budget Your Home Life

No matter where you are in your adult life, one thing is for sure: it’s a whole lot easier if you create — and stick to — a budget. The power of budgeting extends far beyond your checkbook, too. Take, for example, your home. There’s so much that you can simplify simply by budgeting your time, space and, of course, your money. Below are xx things to consider at every stage in as you move out on your own, move in with someone else, nest… the list goes on. Regardless of where you are, your home should be a place that inspires peace and personal happiness, and having everything in order is vital in achieving that feeling. Let’s get started:

Living With Someone… Or Living Alone

Living with a roommate is a great way to cut living costs, especially if you live in a city where the cost of living is high. Furthermore, cohabiting can afford you more space than what you could afford on your own — say hello to a living room, terrace or a kitchen in which you can actually move.

For some of us, though, the heightened cost of solo living is worth the money. If you find yourself leaning toward this option, you’ll still have things to consider in order to spend your money in the best possible way. In most cases, you’ll have to decide between a studio or a one-bedroom place.

The former option is often cheaper, although it requires you to inhabit a smaller space. Of course, this isn’t a big deal if you’re organized enough or used to this type of lifestyle. The one-bedroom gives you a clearer division of communal and personal space, which some people simply need.

Budgeting tip: Track your spending for a month or two. Use a spreadsheet or a budgeting app to see what you afford. Based on the numbers, and after weighing the pros and cons of each option — cohabiting versus going it alone — you’ll likely know which type of living is best for you and your budget.

Buying a House

One of the biggest decisions in life is if and when to buy a home. Unfortunately, there’s no perfect time for you to do so. As with most things in life, you’ll have to go with your instinct as to whether or not it’s the right moment. You’ll have to be ready savings-wise, as you’ll need a down payment in order to secure a loan.

There’s also the emotional toll that home buying can take: Are you ready to fight for and, potentially, miss out on the home of your dreams? That’s a real possibility that some first-time homebuyers don’t consider, and find themselves heartbroken at the end of their process.

There are some steadfast pros and cons that come with purchasing property, no matter whether or not you’re ready for the financial or emotional parts of the process. For one thing, renting gives you less responsibility. If you’re in and out of town often, for example, renting might be better so that you’re not responsible for home and building maintenance. It’s also obviously less of an investment if an appliance breaks or the roof leaks. On the other hand, buying a home gives you freedom to make your space your own.

Most rentals restrict or completely deny your attempts at personalization, but, if you own the place, you can do whatever your little heart desires.

Budgeting tip: Buying versus renting is a long-standing debate, and only you can determine what’s best for you and your wallet. You’ll want to review costs of homes in the area to know if you’re making a sound investment, have an honest conversation with yourself about what’s in your bank account and evaluate what your plans are and if you’ll stay in the area or move on. Another question to ask yourself: How much do you want to be responsible for? Determining answers to these big questions will help you think about your potential as a homebuyer.

Decorating

Whether you rent or buy, you should also consider your budget as far as the looks of your place. Again, home living allows you to do whatever you want in terms of paint and upgrades — unless there is a homeowner association or local laws about the height of that fence — but, once you have that freedom, you still have to consider your budget and bottom line before you dig in.
Obviously, you can pick up the essentials and linens, such as figuring out the towels you need for every room, bed linens, kitchen supplies, etc. These little touches will go far and clearly don’t cost as much as a total renovation. The rest will require you to look at your budget and decide how much to spend, and when.

A big project will require more overarching planning, while picking up small decorative elements or a can of paint, for example, can be a month-to-month process that ebbs and flows with the funds in your account.

Budgeting tip: Keep the big picture in mind. If you can’t afford a house that’s turnkey, do you want to, or have, thousands of dollars to redo an entire kitchen or bathroom? Would a savings plan and waiting a few years work better? And if you’re renting, these types of projects are totally up to your landlord — so it’s more about what you can live with, like those little fixes, versus investing in the property yourself.

At the end of the day, the most important thing about budgeting is that you do it in some way. That way, you can feel secure in all of your decisions, whether you’re moving, buying, or making your space your own. With a roof over your head, though, you’ve got the most important thing down.