Every Household Should Have a Budget - Getting Started

By
Mortgage and Lending with Bay Equity, LLC 770-634-4021 NMLS #206275 GA 25689
https://activerain.com/droplet/ZHY

 

Every Household Should Have a Budget!  The key to financial success is to have a plan.  So to formulate that plan, you need to have a household budget.  

 

So let's talk about how to prepare your budget.  The biggest obstacle for most is just getting started.  It seems like a daunting task.  But these helpful hints will get you started.  Here is what I recommend my clients do first.  For the next 30 days, I want you write down every penny that you spend.  

 

At the end of 30 days, tally your expenses by category.

How much did you spend on housing?

How much did you spend on utilities?

How much did you spend on groceries?

How much did you spend on your vehicle?

How much did you spend on clothing?

How much did you spend on entertainment?

How much did you spend on medical expenses?

How much did you spend on insurance policies?

How much did you save?

 

I like to put all of this in a spreadsheet so that changes can be made easily.

In my next blog we will talk about how to put the budget together.

 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

F:

404.745.8060

 

Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988


 

 

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

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Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Donna Foerster 08/13/2013 02:01 PM
  2. Karen Johnson, Realtor, ABR 08/14/2013 10:00 AM
  3. Sharon Parisi 08/15/2013 01:46 AM
  4. Trisha Bush-LeFore 08/15/2013 03:47 AM
  5. Las Vegas Real Estate Agent Dawn Barrier 08/16/2013 02:50 AM
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Rainmaker
3,157,734
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Kathy - getting started is typically the most difficult step of establishing a budget.  The findings can be quite surprising.     

Aug 12, 2013 10:12 PM #6
Rainmaker
646,843
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Emcee, regardless of the economy, everyone should have a budget.

Karen, most of my clients that complete the exercise are stunned at the results.

Dana, everyone needs to find their own system.

Michael.  I have found that this works well for my clients.

Aug 12, 2013 10:31 PM #7
Rainmaker
1,277,391
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

Kathy~ Making a budget does not need to be an overwhelming task. This is a great way to get started!

Aug 12, 2013 11:47 PM #8
Rainmaker
646,843
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Donna, the most difficult task for most is just getting started.

Aug 13, 2013 01:31 PM #9
Rainmaker
3,721,941
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Kathy,

What a great list you have created to help those get started in what can appear to be a daunting task of getting started formulating that much needed budget!

Aug 13, 2013 08:56 PM #10
Rainmaker
646,843
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Thank you Dorie!

Aug 13, 2013 09:55 PM #11
Rainmaker
1,203,584
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

I applaud you on this post ... LOUDLY, Kathy!  Great idea.  You paint potential clients (and others) a clear picture of some of the first steps they need to take to good financial health and preparation for successful mortgage financing.  Good for you!!  Suggested!

Gene

Aug 14, 2013 04:21 AM #12
Rainmaker
259,060
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Kathy,

The sooner you start to save the better. Unfortunately, most household don't consider a budget until it's too late. That's why the retirement savings gap is in the trillions. If you don't account for all you spend, how can you ever hope to save effectively? Thank you for this post!

Aug 14, 2013 04:54 AM #13
Rainmaker
646,843
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Gene, that is high praise coming from you!  Thank you!

Phil, exactly the point!

Aug 14, 2013 09:04 AM #14
Rainmaker
486,099
Shar Sitter
Rooms With Style - Minneapolis, MN
Home Staging and Redesign Minneapolis/ St. Paul, M

This will be a great series of blog posts for people Kathy! So needed by everyone and usually never done. 

Aug 14, 2013 09:40 AM #15
Rainmaker
646,843
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Shar, it is really disappointing how many do not budget.

Aug 14, 2013 10:26 AM #16
Rainmaker
1,054,341
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Kathy, I have suggested this post along with Post 2 and I am re-blogging both for my readers. Excellent posts!

Aug 15, 2013 01:15 AM #17
Rainmaker
513,800
Lisa Friedman
Great American Dream Realty - Essex, VT
29 Years of Real Estate Experience!

Kathy, great post. I wish they would teach personal finance in high school.  The world would be a much more responsible place!

Aug 15, 2013 08:19 AM #18
Rainmaker
335,392
Las Vegas Real Estate Agent Dawn Barrier
eXp Realty - Las Vegas, NV
South Las Vegas, Henderson, Summerlin Homes

Great Post, Great information for all!  Great for a re-blog!

 

Dawn

 

Aug 16, 2013 02:45 AM #19
Rainmaker
1,078,873
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Kathy, came over here from Sharon's re-blog. I agree with Lisa that personal finance should be taught in high school. In fact, begin in elementary and teach it again in middle school. It's never too early to learn.

Aug 18, 2013 11:09 AM #20
Rainmaker
646,843
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Thank you Sharon!

Lisa, I agree with you.

Thank you Dawn!

Sharon, I agree with you.

Aug 18, 2013 11:18 AM #21
Rainmaker
489,217
Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Kathy, I think a money management class should be required for high school graduation.  Great list you have there, and hopefully many will tune in next time for your next budgeting blog!! :)

Aug 18, 2013 01:27 PM #22
Rainmaker
646,843
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

I agree with you Sonja.

Aug 18, 2013 09:55 PM #23
Rainer
697,968
Christine Farkas
Keller Williams Western Realty - Bellingham, WA
Awesome Customer Service Experience

Great post thank you, it's hard to think of the things one needs to budget, and this is a great general overview!!

Aug 19, 2013 03:19 AM #24
Rainmaker
646,843
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Thanks Christine!  I am glad it was helpful.

Aug 19, 2013 12:24 PM #25
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