When I started to understood the importance to have a budget, I start also to understand which is one of important goal to achieve, weird but true, also if I am a traveling lover , my most important goal is have money for a deposit...
There is my brother's best friend that has just bought his home, after years of renting, but he is been able because he has a good job contract and good salary...however there are some things that banks ask before accept or decline your request for a mortage.
for example do you know that banks prefer accept mortages request from employed agains sel employed? Yep self employed are a risk also for the bank. However when I worked into real estate agencies I visited a lot of beautiful homes-apartment-studio with clients that fall in love with someone and then said this phrase" I need to ask a mortage"....it happened several times, the mortage amount that you can have is pone of firt thing that you must to do after you startated research of your home, so realtor will choose only house in your budget and you willn't love something that you can't afford.
Banks ask all documents form your work so they can understand which is your min and max budget, which is best rate and interest for you and a good counselor will follow you also after sale, because there will be other interest better than now....so when you start to looking for your home create a folder with a good and organized documentation about your annual income and also if you love your bank, don't stop at first answer, ask from 3 to 6, then chose the 3 best for you, write a list of pros and cons and then choose...sometimes your bank is good but doesn't offer a good deal for mortages.
N:B: Most realtors have a salary based on commission only so is frustrating for boths part when client doesn't find what is looking for, but if you are honest at 100% with your realtor is good deal, is better earn less but see a client happy, remember a happy client is a good oublicity for your work;)
I was talking with a friend of mine that is living alone from 10 years, we were talking about job contracts and how a normal people would must to save, so here our personal tips:D
- If you have the worst habit of buy your lunch daily plus a couple of coffe per day, change this habit, you could spend easily €10-15 per day that means a total of 3500
- if you are living with your parents or you've just came back to live with them to save, well is probably that you'll live for free...but this isn't a good excuse, try to think how much would cost yuor room in another house, then open a saving depposit and every month put that amount there, in the end of the year you will have a good amount saved thanks to your parents:P
- There are also people that started to live alone and aren't going to came back to live with parents, so they share flats with strangers, students, but having other peoples for bills helps to save money, but yep is possible that sometimes your food magically disappear from fridge:P
Personal note: Right now I am in the phase of "saving for" because my job contract for the moment willn't permit me to request a mortage but hopefully this thing will change soon, but it is nice see how my budget changed in the last 3 years!!!