Budgeting as a Homeowner
December 1, 2025
Create a Budget
Creating and sticking to a budget is crucial for everyone, especially homeowners. This can feel like an intimidating process at first, but it becomes much more manageable as it is broken down into steps. There are helpful tools available to make the process simpler. For example, an income tracker and spending tracker will help you stay on top of your income and expenses, a bill calendar is useful for keeping track of bill due dates, and a budget worksheet will help you pull everything together. Once you have collected and recorded all the information you need, you can analyze your spending habits and create a savings goal for yourself.
Couples should plan out their financial decisions together to adequately prepare for present and future expenses. If both individuals already have budgets, these can be used as a starting point to plan one together. A few additional things to consider as you discuss budgeting with a partner include reviewing the beneficiaries on your accounts and revisiting your insurance to make sure you are getting the best coverage and rates for your needs.
Factor in Fixed, Variable, and Unexpected Expenses
When creating a budget, it is important to recognize the difference between fixed expenses and variable expenses. Fixed expenses do not change from month to month, while variable expenses are subject to change. One way to estimate for variable expenses is to look back at previous statements to see how much you spent in those categories during the same month in the prior year. Unexpected expenses are often overlooked during budgeting, but they are just as important to estimate as fixed and variable expenses. Common unexpected expenses include home repairs, car repairs, medical expenses, and unplanned travel.
Fixed
- Mortgage
- Car payment
- Insurance (car, home, health, dental, vision, etc.)
- Property taxes
- Cell phone and cable/streaming services
- Student loans
Variable
- Groceries and household items
- Utility bills (electric, water, sewer, trash removal, etc.)
- Gas (car and/or home, if applicable)
- Donations
- Entertainment/dining out
- Childcare
- Educational costs
Factor in Planned Home Renovations and Upgrades
It is easy to blow through the budget on home projects if you do not account for the cost of each individual project beforehand. Luckily, there are resources available to help you budget accordingly. Below is a list of common ways to increase curb appeal without breaking the budget.
- Paint or replace the front door.
- Add new life to the property by refreshing the landscaping.
- Clean up the driveway by removing weeds and dirt, power washing, repairing, sealing, and making sure garbage cans are out of plain view.
- Clean the windows and paint the exterior of your home.
- Revamp the porch with outdoor lighting.
Plan Budget Reviews
Once you have a budget in place, review it and make necessary adjustments every one to three months. This will prove to be especially beneficial in the future, as it will help you track and prepare for maintenance and repairs. It will also help you anticipate the cost of utility bills every month because you will be able to refer to a previous month as a rough estimate. With that information, you can then determine if it is feasible to save additional money every month or to apply more to the principal on your mortgage.
What To Do When Expenses Outweigh Income
One aspect of budgeting that is typically overlooked is what to do when expenses outweigh income and you find yourself with credit card debt. It is important to understand that there are reputable credit counseling resources available. Below is a list of questions to ask credit counselors before accepting their services.
- What services are offered?
- How do you offer credit counseling?
- Do you offer any free educational materials?
- What are your fees?
- Will there be a formal written agreement?
- What are the counselor’s qualifications?
- How do your employees receive compensation?
Asking these questions will ensure that you are aware of the costs associated with credit counseling before you agree to accept help.