If you plan on becoming a homeowner, setting and sticking to a budget is a must. Budgeting will help you save for a down payment on your new home, as well as help set aside money for emergencies or vacation. Whether you’re looking to buy a rent-to-own home with a deposit, a HUD home with low down-payment requirements, or a traditional mortgage; wise money management is a good skill to have early on.
How to start creating a budget:
When starting a budget, the first thing to do is take an inventory of your current financial situation. This will help you see areas where you may be wasting money, as well as get a good idea what your income to debt ratio is: