How New Home Owners Can Set Themselves Up for Financial Success

How New Home Owners Can Set Themselves Up for Financial Success

Without proper planning, it can feel like money is getting tight quickly within your first year of home ownership. How do you avoid this? You’ve gone so far to get the home you want, are you really willing to compromise on things like repairs and updates?

If you’re looking for the best ways to save money right after buying a house, then be sure to check this out in order to learn about the best ways to make smart money decisions as a new homeowner. There’s more to owning and maintaining a home than preparing a healthy down payment and paying the mortgage on time.

Here are 4 tips on saving money right after buying a home:


1. Insurance

You might be thinking, “but doesn’t insurance cost more money?” The truth is that if you’ve bought a house, then you’ve made probably the biggest purchase of your life, which means you have to take care of it and keep it insured. Get a policy that will cover your home in worst-case scenarios. It might seem like a tough decision to make at first, but down the line, you’ll be grateful you have this extra support.


2. Property taxes

Are you ready for all of the responsibility that comes with property taxes? You’re already paying the mortgage, but you also have to factor the property taxes you will have to settle each year. In order to stay on top of things, learn how much property tax you will pay for a year and divide that number by 12. This way, you can budget or property tax monthly and avoid any unexpected hefty costs all at once.


3. Be a smart decorator

Now that you’ve got a new home you’re probably all rearing to go with ideas for improvements and upgrades to make it even better than it already is. While it’s tempting to throw all your energy into upgrading the house at once, you should be smart and set financial boundaries when it comes to how you plan on decorating.


4. Maintenance and repairs

While the amount of money that you’ll have to put into home repairs will depend entirely on your particular home and your budget, one survey has shown that new homeowners can spend on average of $6,650 on home improvements in a year.

Don’t let these costs catch you off guard. With easy payday loans and reliable online short-term loans available, an unexpected financial cost doesn’t exactly spell disaster. But you should still be prepared for anything as best as you can be. Once you are moved into your home, put away 1-4% of the purchase price of your home in an emergency fund that is especially dedicated to emergency repairs and annual maintenance.

Ultimately, you need to have a spending plan in place and make sure that all stakeholders in your home are on the same page. As you prepare for your new life as homeowners, decide what your priorities are, how you plan on saving, what type of purchases you are willing to make right away, and what needs to wait. Buying a new home is already a major financial decision, handle it well with the right preparation.