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Budgeting for everyday costs in your new home

When you move into your new home, there will be a number of expenses to factor into your budget. Some of them will need to be paid for monthly, while you might receive the bill for others on a quarterly or yearly basis.
It’s easy to put together a budget, especially if you know how much you will need to pay out and when.

Know your main expenses

  • Water
  • Gas 
  • Electricity
  • Mortgage payments
  • Council tax – the amount you pay will depend on which council tax band your property is in. You can check this on the Directgov website
  • Broadband, home phone and line rental
  • TV licence
  • Home insurance
  • Management charge - this applies to homes on some of our developments, so check your reservation manual to find out if (and how much) you will pay

How to work out your budget

Everyone’s monthly incomings and outgoings are different, but the way you calculate your budget will be the same. 

Firstly, work out how much money you are bringing in each month. If you are buying with someone else, add your two salaries together.

Then it’s time to figure out how much your main expenses will amount to each month. Factor in other costs such as how much you spend on petrol, travelling to work and leisure activities. This is also when you should take into account any of your other expenses such as car insurance, food, childcare and loan repayments you may not have already considered.

For any payments you make annually, divide the amount you pay by 12 to get a monthly amount and add this to your list of outgoings. It’s important not to miss any expenses out, as this could affect your monthly budget.

Now you have all this information, the calculation is simple:

Your monthly income – your monthly outgoings = your spending budget

Your monthly income (how much you earn and receive in benefits).
Your monthly outgoings (household bills such as gas, electricity, water and council tax, as well as the cost of running your home).
How much is left over each month? How much you have to spend.
How much of this is realistic to set aside per month? The amount you should aim to save.


When to review your budget

Once you know what your budget is, the next step is making sure you keep to it. Your personal financial situation is likely to change from year to year, so by regularly reviewing how much you are spending and saving, you will be able to adapt your budget accordingly.

Remember to look back at your budget every so often to confirm how much you should - or shouldn’t - be spending. 

No matter how well you manage your budget, there will always be unexpected expenses you have to pay for. If your boiler suddenly breaks down or your car needs repairs, it’s important to have a rainy day fund you can access.

Top tips for buying a new home

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A Simple Guide to Shared Ownership
Your Guide to Buying a House: All You Need to Know
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