Whether you're planning on buying a house here in Anchorage, Alaska or you're leaning more toward Danforth real estate, the basic steps you'll have to take to prepare yourself financially for a home purchase are the same. Before you commit to a major purchase like a house, you'll need to make sure that you'll be able to stay afloat and meet all your expenses on your current income. Though we don't know what your current income is, we can give you some tips on budgeting and what percent of your income should go where.

House

Your mortgage payments will absorb the largest chunk of your monthly income, even if your mortgage broker in Toronto got you a great deal. Experts agree that you should never spend more than 30% of your combined income (i.e. you and your significant other's money together) on your mortgage. That's after income taxes are taken away. Any more and you risk not being able to afford all the other expenses that necessarily come along with owning a house, like homeowner's insurance, property taxes, and maintenance.

Household Expenses

Even once you've managed to pay off all of the above expenses, there are more expenses waiting in the wings. You'll have utilities to pay off (electricity, water, heat, cable TV, telephone, and internet) as well as a need to feed and support your family. Food is another huge chunk of your income, but one that's non-negotiable. You can skimp on new clothes and bedsheets and curtains, but you need to eat. Large mortgages don't give you a lot of leeway, so to save money avoid eating out and clip coupons to cut down on grocery costs.

Personal Expenses

You need to get to work. You need to clothe your body. You need to keep fit, cut your hair, and buy shampoo. You need to visit your family in their Toronto lofts. All this costs money. So don't forget to factor in your car insurance, money for fuel, maintenance costs on your car, work clothes, gym memberships, nights out at the movies, and of course your student loans and credit card debts. To remember it all, save your receipts and go through them.

Savings

Even after everything else is paid - from your commercial mortgage to your kids' tae kwon do classes, there should still be a bit left over. Experts hope it's in the vicinity of 10% of your income. This money should be put away in case of emergencies or to save up for your next big purchase (car, vacation, etc.) Many people have several savings accounts - one for emergencies, one for a big purchase, one for retirement, and one for college accounts for each of the kids.