29 Apr This Budget For New Homeowners Can Make or Break Year One
The first year of living in your first property can be a little tight financially but if you know how to set up a new home budget properly, you won’t have to worry. If you purchased the house sensibly and handled your money intelligently up until now, don’t stop. Just because you own the home doesn’t mean you’re home free.
For a rainy day
If you want to survive, the first step is to establish some money reserves. Seriously, without a little extra in the bank you could set yourself up for some nasty surprises that are hard to recover from.
Consider that your home has to be maintained. Heating, plumbing, electrical and structural damage can seemingly happen out of nowhere and a good maintenance schedule can definitely help. You also have to think about the weather.
Seasonal expenses are a part of life and if you’ve got reserves set up to deal with them, you won’t go into a panic as the mercury drops.
Depending on the season you may have to think about certain expenses like:
- Winter: Salt, shoveling, pipe damage, sealing structural holes
- Spring: Aerating your lawn, landscaping, gardening
- Autumn: Eaves troughs, roofing, leaf cleanup
Sometimes not knowing how to prioritize payments alone can cause you problems too. Set up a budget that prioritizes your mortgage and life necessities. Paying your debts and housing costs comes first.
Let’s not get ahead of ourselves
One important distinction you’ll have to make as a new homeowner is the difference between a repair and an improvement. You can go all out and renovate to your heart’s content but is that wise during your first year?
House repairs that put you at risk or can lead to further damage are more important than anything else, no matter what your friends or spouse say. Rushing in will only deplete funds better used as reserves.
That being said, if you do need to have work done, don’t try and save money by hiring a cheap contractor. You get what you pay for and selecting a contractor who cuts corners can lead to further work being needed. You also run the risk of violating code with certain unscrupulous individuals and at the end of the day, you’ll be footing the bill – not them.
An ear to the ground
Foresight can save you more money than you’d think. By taking out comprehensive insurance, cashing in on as many tax credits and getting a professional to look over your taxes you can keep the momentum going from all the smart budgeting you did on the long road to getting your home.
A budget is nothing more than a plan. When you’ve finally secured your new home you shouldn’t shift gears. It’s a valuable investment and the best investments are nurtured right up until the end. Don’t put a new home budget on the backburner unless you enjoy not being able to predict when you’re going to take significant financial hits.
Find a house, within your budget
Clearly, finding a home that meets all your needs, and doesn’t break your budget is also crucial.
Finding the right home for your wants and needs can be very challenging, At Previn Court Homes, we recognize the peace of mind that a newly built home provides, and our friendly staff takes the time to introduce you to all of the features of our quality residences.