Trial Run of your Finances

You want to buy a new home, you have everything in your hands, you have done a lot of research, you have saved for the down payment & you have jotted the expenses on paper, but how would you know that everything works according to your plans?

Well, the answer is to make a trial run or create a simulation of what you have researched over the time. It will help you get a good sleep at night without worrying about your expenses. The step is to simulate the feeling of being a homeowner- before buying. How to do it?

The first step is to make a total of your monthly expenses. This can include everything from your living expenses to your EMIs, taxes, insurances, maintenance costs, etc. Don’t worry if you don’t have concrete numbers, you just need to get a rough idea about everything. This will sum up your total expenses and you can check how it matches with what you should be paying for your home. After that, you need to create a savings account that is solely dedicated to the purpose of buying your home. In this account, you will be saving up the same amount that you would pay as your total monthly expense for a few months after becoming a homeowner. This will be just a simulation of your monthly expenses after buying a home.

If you can successfully complete this simulation then be rest assured about your future expenses after home buying. In case you are still unable to pull this off, then try considering doing some adjustments in your life to achieve financial stability.