Budgeting for new homeowners: a monthly checklist

You did it. You navigated the viewings, the paperwork and the nail-biting wait. You’ve officially got the keys to your very own place! It’s a huge milestone, and you should be incredibly proud.

But as the initial excitement settles, a new feeling might start to creep in. The one that whispers, “Erm, how do I actually manage all of this?” From council tax to that leaky tap you didn’t notice before, the financial side of homeownership can feel a bit daunting.

We’re here to help. Think of this as your monthly checklist to get your home finances in order. We’ll walk you through all the new costs to consider, helping you focus on bigger goals, like planning for renovation projects.

Checklist part 1: your fixed monthly costs

First up, let's look at the big, regular payments that’ll form the foundation of your budget. These are often monthly, so you can set them up and (mostly) forget about them – although bear in mind, they’re likely to increase every year.

• Mortgage payment: this’ll likely be your largest new cost. It’ll only be a fixed cost if you’ve chosen a fixed rate mortgage (rather than a variable rate one).

• Council tax: you should have been contacted by your local council about setting this up when you moved in. 

• Buildings and contents insurance: a key way to protect your property and belongings.

• Other fixed costs: don’t forget about other regular payments like your broadband and TV licence. 

If you're just getting started with these after moving in, our guide to setting up your household bills can help.

Checklist part 2: your variable running costs

Next are the running costs that can change from month to month. These need a bit more attention.

• Energy (gas and electricity): you can budget for these by looking at your home's past usage (the estate agent or previous owner might have this) or by setting up a fixed monthly direct debit with your new supplier.

• Water: this is usually billed either on a meter, if you have one (you pay for what you use) or a rateable value (a fixed annual charge). 

• Other variable costs: this includes all the other things you spend money on, like food and other household essentials.

If you bought with a partner, you might want to manage shared costs with a joint bank account.

To open a Joint Account you'll both need a Monzo account. Aged 18+. UK residents only. Ts&Cs apply.

Checklist part 3: the essential maintenance fund

This is the big one that often gets forgotten. As a homeowner, you're now responsible. If the boiler breaks or a pipe leaks, it's on you to fix it.

A maintenance fund is a pot of money you set aside specifically for the upkeep and repair of your home. A good rule of thumb is to save 1% of your property’s value each year for maintenance. So, for a £250,000 home, that’s £2,083 a year, or about £174 a month.

The easiest way to do this is by setting up a dedicated home maintenance Pot and putting money aside automatically each month.

Part 4: putting your budget into action

Now it’s time to bring it all together.

1. Tally up your costs: add up all the fixed and variable costs from the checklist to understand your total monthly outgoings.

2. Use a framework: a simple budgeting framework can really help here. A popular one is the 50/30/20 rule, where 50% of your income goes to needs (like your mortgage and bills), 30% to wants, and 20% to savings. 

3. Track your spending: use Monzo's built-in budgeting features to set targets for different spending categories, like food shopping and transport, and track your progress automatically. You'll get alerts if you're close to your limit, which helps you stay on track.

Review your homeowner budget 

A budget isn't a one-time thing – no matter how well you plan, life changes so your budget should too. Review it every few months to see what's working and what isn't. Are your energy estimates right? Are you overspending on takeaways? Have you set aside enough money for groceries? Small adjustments can make a big difference.

Once you're in control of your monthly costs, you can start looking at the bigger picture. A solid budget is the first step towards long-term financial goals, like understanding how your mortgage can build your credit score.

Questions? Answers.

What are some costs new homeowners often don't think about?

Beyond the obvious, things like service charges (if you're in a flat), life insurance to cover your mortgage, and initial costs for things like new furniture, curtains, and basic tools can be missed.

How can I budget for variable bills like gas and electricity?

Most energy suppliers will let you set up a fixed monthly direct debit. This means you pay the same amount each month, which can make budgeting much easier. They’ll adjust it once or twice a year based on your actual usage.

We bought as a couple. How should we manage the budget together?

A joint account can be a great way to manage shared household expenses. You can both pay into it each month to cover bills and other costs, so things are fair and transparent.

What's the best way to physically track my new homeowner budget?

The best way is the one you'll stick with! For many, a banking app with built-in budgeting tools is easiest. With Monzo, you can set budgets for different categories, see your spending in real-time, and move money into dedicated Pots for things like your maintenance fund.