Tundraco's Daily Living Guide to Money Budgeting to Buy a Home

Buying a home is a long-term financial commitment. However, before you can even begin to start the home buying processes, you have to save enough money to cover your initial expenses. You can easily save this money from your current income, simply by working out a budget, and following it.

The first step in budgeting to buy a home is to become a practiced list maker.

• List all your current debts and regular financial obligations, such an electric and telephone bills, food, car insurance, and rent.

• List all your sources of income.

• Subtract your financial obligations from your income. What you have left with is your discretionary income. This money goes to such items as dinners out and to your savings fund.

If you're already saving large enough amounts to buy a new home, fine. If not, you'll need to work up a budget that allows you to allocate more funds to your 'new home' fund.

In budgeting to buy a home, you will be mostly concerned with your discretionary income. Your goal is to use that money more efficiently, so that you can save more of it.

An effective way of budgeting for your new home is to treat your new home saving plan as a regular expense.

• Once you decide how much you can afford to save each week. Bill yours for that amount and write a check for that payment and deposit it directly into your savings account.

• Then pretend that the money no longer exists. This will help prevent you from spending your 'new home' savings.

More tips on ways to save money.

Pay off your credit card debts and 'bank' the money you saved on the interest payments you would have had to pay.

• Lowering your debt will also help you qualify for a mortgage.

Keep a list of all your expenses. You'll be surprised to see how much money you waste on 'silly' things. For example, that $3 you spend every morning on your way to work on espresso adds up to 780 dollars a year!

• By eliminating or cutting back on non-necessities you can save up enough for your down payment is no time.

If after all your belt tightening actives, you still cannot afford a new home, it may be time to consider taking a second job.

• A second job is an easy way to raise more money, and it shows a lender that you are serious about achieving your dream of home ownership.