Years ago, when I was looking for my very first apartment, it all seemed so overwhelming. How in the world was I supposed to know which apartments to look at? Sure, I wanted it to be in a nice area of town. And, yes, I wanted a place that would be close to my work. But how much could I afford?
It really seemed like maybe this was some arbitrary number. Luckily, I figured how how to budget reasonably BEFORE I signed my first lease. And I never had to find out what it was like to be paying rent that was way over what my home budget would allow.
Learning how to budget was also SO essential when we started looking for a place to build our homestead. Without knowing how set up a reasonable budget, we never would have known what we could or could not afford.
When we started looking at buying our own place to start our homestead, we used this same method to figure out how much we could afford to pay a month for the mortgage. This allowed us to figure out our price range and see how much land and house we would be able to buy.
The first key to figuring out how to budget reasonably is to know EXACTLY how much money you will bring in each month.