When you’re buying a home, it’s easy to feel overwhelmed by all the decisions you have to make. Are you looking for a fixer-upper or something move-in ready? City or country? Ranch house or townhome? Believe me, I get it. A home is one of the biggest purchases you’ll make in your life, and you want to feel confident making the right decision for you and your family. I’ve got some good news: Your home can absolutely be a blessing! You just need to make sure you’re financially prepared to buy it, and that you buy a house you can afford. Here's the reality: Drowning in a house payment every month turns that blessing into a curse really quickly. That’s called being house poor, and it means you won’t have enough money left over every month for other financial goals, like investing for retirement or even saving for a vacation. Yikes. How Do I Budget for a House? We’re about to walk through the five key steps to budget for a house. But first, I need to warn you—you should only buy a house when you’re debt-free with a full emergency fund. Otherwise, owning a home and covering the expenses that go along with it will be super stressful. Without that kind of margin in your budget, anything that goes wrong or needs repair (like a broken fridge or leaky roof) can turn an inconvenient expense into a full-blown money crisis. So before you start making your house budget, pay off all your debt and save up an emergency fund worth 3–6 months of your typical expenses. Once you do that, these five steps will set you up with a great plan for buying a home on a budget.
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