Money Saving Tips For New Homeowners
Congratulations on making the leap into homeownership! Saving for a down payment and setting up a mortgage are incredible hurdles that you’re now past. The expenses aren’t over, though. Here are some tips for staying savvy with your financials now that you’re a homeowner.
Adjust your budget
The budget you had as a renter probably won’t cut it anymore. Many people think substituting their rent payment with their mortgage payment will even everything out. But switching from an apartment or other rental property to a house will increase other expenses, too. For example, your heating and electric bills will most likely rise, and you may have new expenses such as lawn care. Now that you’re in a new home, track your spending for the first few months to get a sense of your new costs and update your budget accordingly.
Don’t spend too much too quickly
After the down payment, closing costs and other moving expenses, first-time homebuyers are often tight on money when they move in. Even so, if you have a new home, it can be tempting to fill the rooms with new furniture and decor. After all, you want the house to be comfy and to feel like a home, right? Give your bank account a break, though, and develop your home slowly. Buying too many new items too quickly, or jumping right into renovation projects and repairs, will add up and could put your financial stability in jeopardy. Give yourself time to adjust to the costs of homeownership and rebuild your savings.
Get help with your taxes
Homeownership can drastically change your taxes and the deductions you’re able to claim. Even if you feel confident in filing taxes by yourself, you may miss some steps that could save you money. Hiring an accountant, at least for the first year in your home, will help you take advantage of all the deductions available to homeowners. Then you’ll have a template for the future.
Buying a home is an exciting step, but it can also drain your financials. These tips will help you get back on track.