GMR 6: Breaking Down Budget Categories - Housing
EPISODE 6
A budget doesn't have to be complicated. In this episode, we break down the main budget category, Housing, and all other expenses associated with it. We'll also share some tips on how to save money and manage each of these expenses so you can budget more successfully.
ShowNotes:
Housing - Average of 30% of Net Income
Renting
Pro’s
Fixed payment.
Rent could be increase, but only yearly and no more than $25-$50.
Have the opportunity to move to keep payments lower.
Lower energy costs (smaller size = less heating and cooling).
No maintenance cost.
Con’s
Not yours - no equity.
Smaller size - challenging for larger family size.
Can’t personalize it by painting and remodeling (making it your own).
Small or no back yard.
Other things to consider
Renter's Insurance.
Best to rent and save than to own and not be able to save.
Own - Buy a Home
Pro’s
Equity growth.
Yours - personalize as you want.
Larger size - more room.
You own backyard (pool, swing set, play area).
Con’s
More expensive (P&I, Insurance and Taxes)
$250K home with 20% down = $1,600/mo. (P&I $950, Ins. $150, tax $500).
$250K home w/o 20 % down = $1,925 (P&I $1075, Ins. $150, tax $500, PMI $200).
Higher utility costs - larger space, electricity, gas, water.
Internet, TV Service, Cable.
Overall, 196.3 million U.S. adults will have traditional pay TV.
Less expensive Alternatives
Antenna - free HD channels.
Amazon Prime.
Hulu.
Netflix.
Maintenance & Repairs= your property means it's your cost to maintain and repair.
HVAC Systems.
Appliances - hot water heater, refrigerator, dish washer, etc.
Landscaping.
Updating and Replacing.
Replace (hot water heater, fence, roof, etc.).
Buying New Decorations.
Remodeling (kitchen cabinets, painting, bathrooms, hard wood floors, etc.).
Resources