New Budget...

[ScrimpAndSave]

I am trying to figure out my new budget for when I move into my home in August and begin making payments on it...

After I pay principal, interest, taxes, insurance and HOA fees, I will be bringing $1550 home extra each month.


Electric: $100
Cable/Internet: $100
Cell Phone: $50
Food: $200
Car Insurance : $50 ($600 a year)
Pet Food/Care: $50
Emergency Fund: $500
Entertainment: $200

Ummm...what else am I drawing a blank on? (It's late!) I want to fully fund my emergency fund (get it up to $10,000) and then I will max out my ROTH IRA. I don't have any credit card payments or debts...and my home is fully electric (no gas). I don't have any gym membership or anything that is automatically drafted from my account...

[kork13]

Seems like you've hit the major points. Of course, there seems to be $300 missing from your list here, but I'm sure you have plans for that somewhere...

Just be ready to adjust your budget here if (let's be honest -- when) things turn out a little differently than you have planned.

[ScrimpAndSave]

Yes, there is $300 left and I am trying to allocate it. I definitely want to have some sort of a car repair fund/new car fund so maybe that would run be around $200 a month.

I am actually basing this one having $1500 monthly, but I actually have 26 pays a year. I also get an extra $4,000 over the summer for a pre-school program I direct and I get stipends ($3,500) in two lump sums over the school year for special clubs that I run (Safety Patrol, Student Council, etc).

[ScrimpAndSave]

I forgot about water, sewer and garbage...I am going to say $50 per month for that. I know that garbage/sewer is $300 per year and water is about $35-$40 every three months.

[am_vanquish]

Where does car fuel fall into this budget? The insurance budget seems too low to include fuel & Entertainment just seems like a weird place to put it. Not sure how far you have to drive either.

[Like2Plan]

How about home repairs/improvements? It should be relatively small amount for repairs to begin with since you are getting a brand new place (and expect it will have a warranty?), but what about finishing the basement/powder room and so on...

And, home furnishings.... Are you setting aside some funds to start with? Are you going to set aside enough to completely furnish your new place? Will you be adding furniture over time? In addition to indoor stuff, how about patio furniture and a grill? Will you be buying a washer/dryer? (Any other appliances?)

Heating and air conditioner checks... I have a contract for maint. for heating/ac. Twice a year, I have an inspection (heating in the winter and ac in the summer) to make sure the units are functioning properly.

Landscaping--will that be completely covered under your HOA? Will you have to mow your own lawn? (Will you already have a lawn?) Will you be planting any flowers/shrubs?

[ScrimpAndSave]

How about home repairs/improvements? It should be relatively small amount for repairs to begin with since you are getting a brand new place (and expect it will have a warranty?), but what about finishing the basement/powder room and so on... - I think I am going to hold off on the powder room/basement and maybe use my tax return for it. As far as repairs, I will pull from my emergency fund as needed.

And, home furnishings.... Are you setting aside some funds to start with? Are you going to set aside enough to completely furnish your new place? Will you be adding furniture over time? In addition to indoor stuff, how about patio furniture and a grill? Will you be buying a washer/dryer? (Any other appliances?) - I have a separate budget for these items.

Heating and air conditioner checks... I have a contract for maint. for heating/ac. Twice a year, I have an inspection (heating in the winter and ac in the summer) to make sure the units are functioning properly. - I will have to look into this. Thanks!

Landscaping--will that be completely covered under your HOA? Will you have to mow your own lawn? (Will you already have a lawn?) Will you be planting any flowers/shrubs? - No I will not be planting shrubs and my HOA covers all landscaping and law care.

[ScrimpAndSave]

Where does car fuel fall into this budget? The insurance budget seems too low to include fuel & Entertainment just seems like a weird place to put it. Not sure how far you have to drive either. - I live 2.5 miles from work. Gas is included in my entertainment budget.

[Runaway Finances]

The biggest item missing is discretionary spending....clothes, groceries, cleaning supplies, haircuts, etc. You only have $200/mo. for "food"and $200 for entertainment. My suggestion would be to look at the last 12 months and add up what you spent on those items to get a clear picture of how much you spend on discretionary expenses.

[whitestripe]

personally i think $200 a month for food and $200 a month for entertainment is a little low. also things like clothes, shoes, books, etc, will these be lumped into you entertainment category?
do you have life insurance? is this with the rest of your costs that you have already taken out? what about medical?

[ActYourWage]

"do you have life insurance?"

I think she is single, she doesn't need life insurance.

[ScrimpAndSave]

I am single, but have a little bit of life insurance through my work...it is 1.2 times my salary - which ain't a lot...but I assume it is enough.

[gamecock43]

Do you already know your interest rate, insurance and taxes? I didnt know my actual actual numbers until the day before closing. My closing costs were much higher than I anticipated (but I prepaid 1.5 months mortgage rolled in), taxes were about $1,000 less than I anticipated, and insurance ended up about what I was expecting.

[ActYourWage]

I am single, but have a little bit of life insurance through my work...it is 1.2 times my salary - which ain't a lot...but I assume it is enough.

Just curious, if you are single, why would you need life insurance?

[kork13]

Just curious, if you are single, why would you need life insurance?

I've made this argument a couple times, but I'll voice again... Death is expensive! At the least, funeral arrangements can easily cost $5k-$10k. Medical costs can be even more -- emergency room for traumatic injury, extended medical treatments for more chronic illnesses, and so on.

I'm single, 23, in no relationship right now. I still have life insurance, because I know that if I were to die somehow, it would cost my family thousands of dollars in sudden expenses. I wouldn't want to saddle them not only with the grief of my death, but also a significant and unexpected financial hardship. Is the $30/mo I pay a heavy price for that assurance? Not at all.

I think everyone (children, single adults, married couples, elderly, etc.) should have at least some life insurance to cover, at the least, funeral and other end-of-life expenses.