How to Budget for Housing
- 1). Calculate your monthly income by adding up your take home income on any paychecks you receive throughout the month. Calculate the income you receive from other sources such as alimony, child support or Social Security payments. Write down your total income for the month.
- 2). Calculate the total cost of your monthly rent or mortgage payment. Write down the total.
- 3). Calculate the cost of paying your homeowners or renters insurance premiums. Write the total down.
- 4). Estimate the cost of paying your monthly utility payments. Gather your most recent electric, gas and water bills. Use the cost of these bills to average how much you pay in utilities each month. Keep in mind that utility bills run higher in the summer and lower in the winter, and adjust accordingly. Write down the estimate cost of your utilities.
- 5). Subtract the cost of your rent or mortgage payment, insurance premiums and utilities from your total take home income. You can use any remaining income to cover your other living expenses.
- 6). Calculate the cost of your other fixed expenses, such as car insurance premiums, telephone service and internet or cable service. Write down the total of each expense.
- 7). Estimate the cost of your variable expenses, such as groceries. Write down the total of each expense.
- 8). Subtract the cost of your fixed and variable expenses from your remaining income to ensure you can still afford the cost of living after paying for your housing expenses. If the total cost of your expenses exceeds your income, you will need to reduce your expenses.
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