Budget no more than 14 percent of your pay for food. This includes meals at home, snacks and lunch at work, going to the sports bar with friends to watch the game, and any money that you spend to build up a pantry. Unlike your rent or mortgage payment, the food category is a flexi...
Here's how to calculate your home equity and combined loan-to-value ratio, or CLTV, so you can determine how much you might borrow with a home equity loan or line of credit. READ Best HELOC Lenders Formula for Calculating Your Home Equity As you pay down your mortgage and ...
One of the easiest ways to calculate your home buying budget is the 28% rule. This rule of thumb dictates that your mortgage shouldn't be more than28% of your gross incomeeach month. TheFederal Housing Administration (FHA)is a bit more generous, allowing consumers to spend as much as 31...
Calculating your home equity is simple. Learn how to do it and why it's important to know this number.
1. CALCULATE YOUR TAKE-HOME PAYTo make your budget, start by calculating your net income every month. Net income - often called take-home pay - is the money you receive AFTER the deductions from your paycheck (including taxes and 401(k) contributions). ...
calculating the housing expense ratio, which is the percentage of your gross income that goes to your total monthly housing expenses. By understanding your total housing expense, you can properly budget your income and all of your expenses to ensure you can afford the cost of purchasing a home...
Calculate how much you can afford to save In an ideal world, your budget will help you limit your spending and allow you to save. But if you’re just starting to manage your finances, you may be dealing with debt or not yet have a handle on where your money is going each month. ...
The easiest way to calculate a home office deduction for your small business is to use the IRS’s simplified method: With the simple method, you can deduct $5 per square foot of your home that is used for business, up to a maximum of 300 square feet. This method caps the deduction at...
How to create a budget Calculate your net income List monthly expenses Label fixed and variable expenses Determine average monthly costs for each expense Make adjustments 1. Calculate your net income The first step is to find out how much money you make each month. You'll want to calculate yo...
I used to cringe when I heard the word “budget.” It conjured up images of prison and shackles for me--of a life where fun was nowhere to be found and responsibility was the one and only goal. That's w...