09/03/2021
💸HOW MUCH DO YOU SPEND EACH MONTH?💸
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Do you know what your cost of living is per month? Do you want to know?! 😬
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A key part of a home loan application is considering and declaring your living expenses to the bank. Living expenses means every penny that you spend each month and includes costs such as groceries, clothing, entertainment (going out, movies etc), insurances, vehicle costs, school fees, medical and telecommunications.
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Declaring your living expenses accurately is important because it partly determines how much you can borrow, as the bank will ensure that you have sufficient income to cover your expenses and your new proposed loan repayments. They will also generally review your bank statements to confirm that you have accurately declared your living expenses.
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I find that clients generally do not know what their monthly spending is and their estimates can be way off! This is a discussion that we will have at our initial meeting. It is therefore a good idea to review your bank statements and get an idea of your expenses and maybe consider whether you need to make any changes to your discretionary spending!
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If you would like a basic budget template to assist with your living expenses review, please get in touch! 🧾🤓📊
