A monthly budget is a plan for how you will allocate income to meet your expenses for a designated month. A monthly budget is an estimate, but your goal should be to make as educated an estimate as possible. To do this, you will want to collect a month’s worth of pay stubs, bills, and bank statements, if possible. If you budget correctly you will be able to spend money on things you enjoy without worrying about meeting other financial obligations, overdrawing your accounts, or going into credit card debt.
As a new homeowner, it is important that you continue to budget not only to be sure that you meet your monthly mortgage payment, but to budget for normal future home maintenance as well as unexpected expenses. Keep in mind that your budget may change from year to year based on your income and expenses. There are several things that you must take into account when you plan your budget annually. One of the first considerations is the change in your property tax status.
Monthly Budget Worksheet
Here are two samples and a simple free online system to help you work out a budget: