For months or even years, you saved up money for your first down payment on a home on Claremore. Now it’s time to switch gears and rearrange your budget as homeowner. Balancing your new bills with home maintenance can be a bit of an adjustment. It can be easy to over-spend when decorating and upgrading your new home and forget about things like savings and emergency funds. If you’ve never had a budget before, now is the time to buckle down and make one you can stick to. Get the whole family involved in budgeting to make sure everyone is on board.
Budget Making Basics
Analyze your spending and take a hard look at where your money goes. You can use an app for this or a spreadsheet works fine as well. You’ll be surprised at how much on-essential spending you do. If you have the discretionary funds there’s nothing wrong with that, as long as you’ve taken care of the basics and savings first.
Expecting The Unexpected
The first thing that surprises new homeowners is the increase in utility bills. If you are used to small apartments and not having to pay for trash and sewer than your increase in bills could be a shock. Luckily, the cost of homeowners’ insurance for your Claremore home is included with your mortgage usually.
The next new expense is home maintenance. In a rental, if something needs to be repaired it’s usually the landlord footing the bill. If something breaks in your new home, it’s all on you. This is why it’s a great idea to have a one year home warranty plan as part of your purchase agreement. At least you’ll know the major appliances are covered while you get your finances in order for the first 12 months. You don’t want to be one air-conditioning unit replacement away from not having enough grocery money for the month.
Even when things don’t break, your house can use routine maintenance to keep it in good shape. This is the biggest investment you have probably ever made, and you need to make sure to look after it. Keeping gutters clean, servicing your HVAC system, and getting floors or carpets professionally cleaned can help increase their lifespan and help you avoid or put off costly replacements.
You also have to plan for major disasters like floods, fires, theft, or even a loss of income. While homeowners insurance helps with some of these things, it’s always a huge expense if it happens to you. You should always make sure to have several months of your mortgage and bills saved in an emergency fund in case you lose your job or fall ill.
Planning For The Future
An exciting aspect of homeownership is getting to remodel and redecorate to your own taste and style. That also takes money. Provide room in your budget to save up for that kitchen remodel you have your heart set on. A home budget can help you buy new furniture and appliances without having to use credit and get into debt.