Unit 4: Your home is your castle

Lesson 2: Planning for monthly expenses in your new home

It is very important to plan for monthly expenses. If you do not make your mortgage payments each month, you might lose your home. If you forget to pay your utility bills, the utility company might cut off your water, electricity, or gas.

Your household budget

A budget is one way to be sure that you pay your bills on time. Here are some suggestions that will help you plan how and when to pay household expenses.

1. Know when your bills are due.

2. Know how you spend your money. Keep receipts. Write down everything you spend for a whole month.

3. Plan for large expenses, for example, homeowner’s insurance or car insurance. Mark the date and amount due on a calendar.

4. Save money for home maintenance and emergency repairs.

5. Set aside money from your paycheck for savings. You never know when you might need a new hot water heater. If you have some savings, you will be ready for major emergencies.

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