Few people can purchase a home without getting a loan to do so. That means you have to pay back the loan plus interest – and lots more besides; stamp duty, insurance, solicitors fees and so on. Sometimes budgeting starts off well but you get off track, or extra bills come in unexpectedly and you find it more and more difficult to repay that loan. Here are some tips on how to stay on track with your budgeting.
- If you find it increasingly difficult to pay the mortgage off, it is time to stop and take a reality check. First thing to do is write down everything you spend money on for a whole week – yes, every single thing from that morning coffee to your snack bar or magazine. It may shock you to see just where the money is going. It will also enable you to find ways to plug up the leak so you don’t have to default on your mortgage repayments. Know what’s coming in and how much is going out. The former should be more than the latter. If not, cut back ruthlessly. People once lived quite well without Foxtel, internet connections, mobile phones, coffee from a coffee shop, going out for meals and going out to concerts or footie games. They had no more than 3 outfits. You can do the same if it means keeping your house.