Budget Basics Worksheet
The first step in getting yourself in financial shape to buy a
home is to know exactly how much money comes in and how much goes out. Use this
worksheet to list your income and expenses below.
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INCOME |
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Take Home Pay (all family members) |
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Child Support/Alimony |
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Pension/Social Security |
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Disability/Other Insurance |
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Interest/Dividends |
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Other |
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Total Income |
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EXPENSES |
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Rent/Mortgage (include taxes, principal, and insurance) |
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Life Insurance |
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Health/Disability Insurance |
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Vehicle Insurance |
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Homeowner’s or Other Insurance |
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Car Payments |
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Other Loan Payments |
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Savings/Pension Contribution |
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Utilities (gas, water, electric, phone) |
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Credit Card Payments |
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Car Upkeep (gas, maintenance, etc.) |
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Clothing |
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Personal Care Products (shampoo, cologne, etc.) |
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Groceries |
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Food Outside the Home (restaurant meals and carryout) |
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Medical/Dental/Prescriptions |
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Household Goods (hardware, lawn, and garden) |
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Recreation/Entertainment |
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Child Care |
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Education (continuing education, classes, etc.) |
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Charitable Donations |
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Miscellaneous |
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Total Expenses |
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Remaining Income After Expenses (Subtract Total Income from Total
Expenses) |
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How
Big of a Mortgage Can I Afford?
Not
only does owning a home give you a haven for yourself and your family, it also
makes great financial sense because of the tax benefits — which you can’t take
advantage of when paying rent.
The following calculation assumes a 28 percent income tax bracket. If your
bracket is higher, your savings will be, too. Based on your current rent, use
this calculation to figure out how much mortgage you can afford.
Rent: _________________________
Multiplier: x 1.32
Mortgage payment:
_________________________
Because of tax deductions, you can make a mortgage payment — including taxes
and insurance — that is approximately one-third larger than your current rent
payment and end up with the same amount of income.