A home is more than just shelter from the elements.  It is more than just a place to lay our heads at night.  A home is a place where we love and laugh and create sustaining memories.  For most of us, our homes are also our biggest budget items.  There are many things to consider when setting up a budget to include all of the things that go into running a home.  Breaking it down will give you a more accurate idea of the actual costs of your home.

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• Rent/Mortgage – Let’s just start with the biggie, especially if you have a family.  This is usually the most substantial item on the budget.  It is also the item that has the least flexibility, unless you are willing or able to move.  As a homeowner, you will also either pay to escrow for property taxes or will need to include taxes in your budget to pay periodically.
• Insurance – Whether you rent or own, insurance on your home and belongings is a necessary evil.  We don’t like to think of bad things happening, but at the cost of replacing our possessions, it is important to pay for some piece of mind.  As a homeowner, this can be rolled into your mortgage or paid separately.
• Utilities – There are the usual: trash, water, phone, cable/internet, electricity, gas, etc.  And depending on where you live, there are likely some utilities that need some extra budgetary considerations for heating or cooling your home.  If you live in the north, you will need to consider budgeting for extra tanks of oil or cords of wood.  If you live in the south, you will likely see extreme electricity bills during the summer.
• Maintenance/Repairs – It is inevitable, something is going to break.  The important thing is being ready for it.  Whether you use a cash system or have separate funds for your expenses,  expect the unexpected and budget for it.
• Improvements/Decor – While this category is a matter of personal priority, it is likely that many homeowners will purchase a bucket of paint or a new lamp or replace their sink at some point.

What are your suggestions for a home budget?  How do you make the most of it?

ListPlanIt.com has a new page for members!  Home Fund Worksheet, as well as Auto Fund Worksheet and Utilities Fund Worksheet all found in Financial Planning.  Check it out!