T. Jay Johnson Jr. - Lamacchia Realty, Inc.



Posted by T. Jay Johnson Jr. on 12/13/2019

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When you’re relocating you search for a property and learn the real estate market in your new area. Are you also looking at what the general cost of living is in your new city? The cost of living can be very different from state to state and city to city. Here are some common daily expenses you may want to research as part of your relocation planning. 

Groceries

The cost of groceries and home goods can vary drastically from place to place. If you’re moving to a new city or state your general cost of goods may increase or decrease depending on where you move. This is a cost many people don’t consider when thinking about the affordability of a new area. The price of milk might be 50% more or even double the cost from where you live now. The same shampoo you purchase in California might be half of the cost in Arizona. A change in sales tax will also make a difference in what you pay for goods. To gather information about how this may impact you, check into a few retail stores in your target area (or online if you can’t be local) and make some price comparisons based on the products you purchase regularly.

Transportation

Gas prices can make a difference to your monthly costs. On the coasts, prices can be as high as $4.00 or more per gallon, but in the Midwest and South prices can be under $2.00 a gallon. If you’re moving to a location where gas prices increase consider those additional fill-ups when determining what commute you can manage. Is it most cost-effective for you to live further away from your workplace in a less expensive home? Does it make more sense to find a home closer to work allowing for a shorter commute or the use of a public transportation option? Consider also the amount of time you’re willing to spend on your commute each day.

Food and Entertainment

The amount you spend on entertainment and dining each month may change when you move. In some places a higher minimum wage is set for service industry workers, so a lower tip percentage is common. In other locations the service industry wage is quite low, so a higher tip percentage is the norm. Explore the activities you enjoy while you house hunt to get a better idea of what differences you might experience in your new location.

Services

Finally, the cost of general services can affect your bottom line. From your new hairdresser to housekeeping services to home repair companies you could see a change in pricing. If you frequently use these types of services or would like to, consider how the average cost for them fits into your monthly budget. 

These cost differences may not seem like a big factor, but they can impact your monthly expenses. If you’re moving to a more affordable place you may save enough on basic goods and services that you can increase your mortgage budget. However, if you’re relocating to a city with a higher cost of living, you may need to revisit your monthly budget to see what you can really afford.




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Posted by T. Jay Johnson Jr. on 9/2/2016

When you're a new homeowner, it's hard to refrain from walking down the aisle of Bed Bath & Beyond and dumping everything you see into your cart. Initially, when making a shopping list for your new home it will seem like you need everything  and you need it now. It doesn't always make sense, however, to go on shopping sprees and starting several different renovation projects at once in your new home. Whether you need to be conservative with your money or you want to take your time and furnish one room of your house at a time, creating a household spending budget can be an invaluable tool. In this article, we'll cover how to make your own personalized household budget that you and your family or housemates can use to keep yourselves accountable when it comes to making your new house uniquely your own.

Set priorities

Moving into a new home can be sort of like camping out for the first few nights. Many of the basic things you take for granted might not be unpacked  or set up yet. Other items you might still need to purchase. This is a good reminder of which items matter the most when moving into a home. When you prepare to make your budget, think about the items on your list that are the most vital to your daily life. This may be different for each person. If you're an avid yoga practitioner but your yoga mat got ruined in the move, buying a new one might be higher up on your list of priorities than the average person who occasionally stretches. The best way to find out what items are high up on your list is to go through a few days in your new home and write down everything you need, then arrange it in order of importance. From there, we can start setting your budget.

Budgeting tools

Depending on how comfortable you are with technology, you have several options when it comes to ways of keeping a budget. In your Appstore you'll find a plethora of free budgeting apps that all fit a specific need. One of the most popular, Mint, connects securely with your bank account and lets you set up several budgets. It will track your income and spending and categorize your purchases automatically (groceries, gas, bills, etc.). You can set a "household" budget in Mint and make sure all your home purchases go into that category. If you're more inclined to using a spreadsheet, you can use Google Sheets, or a program like Excel to create your budget. The benefit of using Google Sheets is that it is easily shared and synced with others, allowing you to collaborate on the budget together. Your final option is to use a good old fashion hand-written budget. If you don't want it to be forgotten, you could hang it on the refrigerator or write it on a whiteboard hung somewhere highly visible in your house.

Commitment

The hardest part of budgeting is committing to it. You and your housemates will need to work together to make sure you keep track of your purchases and take the time to plan out your budget, be it weekly or monthly. The best way to do this is to set a reminder in your calendar for a budget planning day once per month with your housemates. Decide what needs to be purchased and who will be buying it. Once you've made a habit of keeping your household budget, you'll be on your way to completing your home in a way that makes sense for you financially.




Tags: budget   advice   budgeting   home   apps   house   tips   appstore  
Categories: Uncategorized