Hello! Following on from last week’s budgeting post, if you didn’t catch that it was my intro to budgeting and costing, make sure you give that a read first and then come back to this one!
This is the second budget post purely about budgeting your house costs. Once you have done this then you can link the cost back in to your main budget. It’s best to start a new tab for this second budget, but don’t worry, in excel you can link the cells even if they are on different tabs!
As before, here is the blank budget to start with, no figures in here as yet. This is the sort of thing that most households have to budget for, you may have a few more or you may be lucky and have a few less!
It’s as easy as it sounds, put in your monthly household figures, add up the outgoings with a formula in D12 =SUM(D2:D11) and you’re done! If you live with someone else and share the costs you can work out your share below in D13, which is just =((D12)/2)
Depending on whether you pay for all of your costs or part, depends on whether you link D12 or D13 back through to your budget. Let’s have a look through what the figures I’ve put in are for…
Life Insurance- this you will probably only have if you have a mortgage, this is essentially a lump sum payment that someone will get if you die. We have this at home, me and my partner own our house jointly and if one of us dies then a payment to cover the mortgage is due.
Mortgage / rent – what it says on the tin, this will vary widely depending on where you live, but with the market as it is at the moment a mortgage on a property is likely to be less than a market rent on the same property due to the high demand for rental property at the moment. If you have a fixed rate mortgage this will allow you to have a more stable budget.
Council Tax- again this will vary depending on where you live. You can contest your Council Tax if you don’t think that it is right.
Landline phone & internet- not everyone will want a landline, but I’m sure everyone will want the internet… We are currently on an unlimited download deal with EE for phone and broadband at around this price.
Electricity & oil / gas – this is one to really shop around (see info in Costs below). We have recently locked in to a deal for a 2 year fixed rate as the prices looked like they were going to increase… Remember to read your meters and send it to your provider regularly to keep your bills accurate.
Water- you are bound to your local provider for this one, but make sure if you are paying a monthly direct debit it’s based on what you actually use rather than an estimate as usually you use less than they think you will. The amount will differ depending on how many people you have living in your house.
Mobile phone- this is probably a bit heavy in the budget and I think you could get this for less. We have two ‘latest’ iPhones with unlimited calls and texts and 15 GB of data and it’s meant to be around £90 per month but undoubtedly there’s some extra charges, i.e. expensive phone calls / photo text etc… so I budget a bit more just in case. This is something I think I can get a bit cheaper so will be looking to re-negotiate this when our account is due for renewal.
Subscription TV / Sky- we don’t have sky because I think it’s too expensive for the use we would get out of it. But we do have Netflix and Now TV. I’d like us to have just one, we are currently testing out Now TV to see which we’d prefer to keep. These ‘on demand’ services are much better value for us as we can watch anything anytime!
The costs I have put in here should be pretty accurate for good deals- this is based on 2 people living together who work full time so are out most of the day. If your costs are massively more than this then you should be looking for a better deal on your utilities. You can have a good look on websites such as compare the market and I HIGHLY recommend Martins Money Tips– sign up to the email newsletter- it has changed my life!
I hope this has been helpful and inspired you to look in to what you’re paying and see if you can save somewhere! Let me know how you budget and save for your household!