If 2020 is going to be the year you finally get all of your financial ducks in a row then you’ll want to start with these 5 high priority finance goals. Homeowners in Claremore, OK, face additional obstacles and debts such as mortgage payments, insurance and home repairs. In order
to protect and grow your property investment, you’ll need a strategic plan.
#1. Outline or Update Your Household Budget
A household budget is a plan that subtracts your fixed expenses from your income and then decides how to spend any leftover funds. Budgeting has become extraordinarily easy thanks to intuitive apps like Mint and GoodBudget. Budgeting helps you see the big picture, knowing
where your money is being spent and how to reallocate it to start working for you, is a huge win. It’s difficult to save or invest money if you don’t have a budget in place to start with.
#2. Create A Savings Account For Home Repairs
If your home desperately needs some repairs or updates this year then having a separate savings account to set aside money to fund them will really help out. Even if you don’t currently need repairs, you never know when something can break on you. Keeping your home in good shape will protect your investment and keep your home value up.
#3. Update Your Homeowner’s Insurance Policy
Many people set up their homeowners insurance when they buy a new house and then never think of it again, unless they need to make a claim. Don’t miss the opportunity to save money by shopping your homeowner’s insurance every year, review your plan for discounts and find the best deal you can. Make sure you don’t sacrifice coverage for a low monthly premium though, should the worst happen, you want to be fully covered.
#4. Make Extra Payments Towards Principal
Did you know that making just one extra principal payment a year on your home can shave 7 years off a 30 year fixed loan? For most people, their mortgage is the largest monthly payment they make. Making an extra payment is probably a stretch for most people, but even paying
small amount or just the one extra payment a year can save you thousands of dollars in the long run. You’ll build equity faster and pay your home off sooner.
#5. Look Into Income Properties
If you love being a homeowner and see the value in owning property, it might be time to look into income properties. You can buy and flip houses, buy and rent houses, or a variety of things in between. Once all of your other financial goals are met, income property can be a smart
investment. You could even use some of the equity in your home to buy your second property and pay both off faster with the profits you earn. It’s a fun investment opportunity for someone with good credit and sound household finances to start with.