Personal Finance Tips For New Homeowners

Personal Finance Tips For New Homeowners

After going through the extensive process of purchasing a home, your bank account may not be quite as robust as it was prior to the purchase.  

It’s important that you pay special attention to your finances after the initial purchase of your home, so you have the necessary funds to maintain ownership of the property.  

If you’re looking for a little guidance on managing your finances, take a moment for a short read.  Here is a brief compilation of a few personal finance tips for new homeowners.  

Recraft your budget 

You clearly have new financial concerns to consider after purchasing a new home, so it’s a good time to sit down to rework your budget.  

Your mortgage payment and energy bill will make up a large portion of your outgoing funds each month, and it’s essential that you plan for those things in the budget.  

Consider regular maintenance costs

Don’t look over the regular maintenance costs of owning a home while you go through the process of reformulating the budget.  You’ll need to have the funds to have your HVAC unit professionally serviced at least once a year.  

You will need the money to take proper care of the yard.  Your air filters need to be changed monthly.  The water heater has to be serviced once in a while.  All of these things add up, and you don’t want to bypass important maintenance steps.  

Invest in homeowners’ insurance 

Homeowners’ insurance will be a gamechanger if your home is ever vandalized or damaged by a bad storm.  Instead of taking the risk of going paying for repairs, take the time to invest in a well-crafted homeowners’ insurance plan.  

While you’re in the realm of insurance, a good life insurance policy can also be a wise financial decision.  You can use your life insurance policy to put your kids through college or cover monthly expenses in a pinch. 

Don’t get caught off guard by big bills

When you buy a home, you should shoot for an escrow situation.  Having the comfort of escrow means that you won’t have to face big lump sum tax payments on the property you’re purchasing.  

However, if you don’t have that setup, you will have to pay your taxes outright.  Taxes can drop a large bill in your lap when you may not be prepared for the expense, so take steps to make sure that doesn’t happen.  

Always have an emergency fund

Setup a separate savings account to cover any unexpected costs that arise regarding your home.  You never know when the kids might put a football through a window, and you’ll want the funds available to repair the window quickly.

David Robertson