Home-buyer Classes & Workshops

Budgeting

Budgeting and tracking your spending are essential tools for managing your finances and using credit wisely. By setting a budget and keeping track of your expenses, you can avoid overspending, stay on top of your bills, and save money for your financial goas, such as saving for a down payment, and use credit wisely to achieve your financial goals.

the importance of budgeting:

Budgeting is the process of creating a plan for your income and expenses. It helps you understand your financial situation, prioritize your spending, and make informed decisions about your finances. A good budget helps prevent or reduce impulse spending and protects against the financial effects of the unexpected, like unemployment, accidents, sickness, aging and death.

creating a budget:

The first step in using credit wisely and achieving your financial goals is to create a budget. To create a budget, start by listing all of your income sources, such as your salary, bonus, commission, freelance work and any side business, or rental income. Next, make a list of your expenses, including rent or mortgage payments, utilities, groceries, transportation costs, and entertainment. Be sure to include any debts you have, such as credit card payments, car payments, or student loans.

Once you have listed your income and expenses, categorize them by fixed expenses, such as rent or mortgage payments, and variable expenses, such as groceries and entertainment. Allocate a portion of your income to each expense category and make sure that your total expenses do not exceed your income.

Make sure everyone in your household/family is part of the plan. If everyone understands the rewards, they’ll be less inclined to overspend, will work harder to make the budget succeed and what a great way to teach our children the importance of following budget.

Be specific in your goals, if they are vague, you may never meet your objectives. Also if you set goals and objectives that are too hard to meet, it can lead to frustration and you will likely not follow your goals.

Your lifestyle and financial situation will evolve. Re-evaluate as your life changes be flexible as life is in constant change. Don’t forget to continue tracking what you spend so you can see how well you’re following the plan and whether you need to make adjustments

Tracking your spending:

After creating your budget, it is essential to track your spending. Tracking your spending allows you to see where your money is going and identify areas where you can cut back on expenses. There are many tools you can use to track your spending, such as budgeting apps or spreadsheets. Make it simple and accessible.

One of the most effective ways to track your spending is to review your bank and credit card statements regularly. This will allow you to see where you are spending your money and identify areas where you can cut back. For example, if you notice that you are spending too much on dining out, you may decide to cook more meals at home to save money. Or is that $10 a day coffee habit worth $200 a month or would that help start a savings account?

Using Credit Wisely:

When it comes to credit, it is essential to use it wisely to achieve your financial goals. One way to use credit wisely is to pay your bills on time and in full (when possible) every month. This will help you avoid late fees and interest charges and maintain a good credit score.

Another way to use credit wisely is to keep your credit utilization ratio low. Your credit utilization ratio is the amount of credit you are using compared to your credit limit. A high credit utilization ratio can negatively impact your credit score, so it is important to keep it low by paying off your balances each month.

Conclusion:


Budgeting and tracking your spending are essential steps in managing your finances and using credit wisely. By creating a budget and tracking your spending, you can identify areas where you can cut back on expenses and save money. By using credit wisely, you can maintain a good credit score and achieve your financial goals, such as saving for a down payment or making a monthly mortgage payment.

Trusted, Standardized, Up-To-Date

Our home-buyer “EdgeUcation” meets the following guidelines from the National Industry Standards for Home-ownership For Education and Counseling:

  • Up to 8 hours of group home-ownership education with individual follow-up

  • Certified home-ownership education trainer

  • Core class content of:

    • Assessing Readiness to Buy

    • Managing Money

    • Understanding Credit

    • Financing a Home

    • Shopping for a Home

    • Maintaining a Home & Finances

  • Home-ownership Instructor who has adopted the National Industry Standards for Home-ownership and who has signed the National Industry Code of Ethics and Conduct

  • Face-to-face training using interactive techniques

  • Education before a purchase contract is signed

Know Before You Owe