Congratulations on the purchase of your first home. No more paying rent and now you get to build equity and invest in your future. However, home owning is more expensive than you might realize. You also have more monthly bills. Sewer, water, trash, mandatory homeowner's insurance, and yearly property taxes are all part of owning a home. However, here are some basic tips to help you keep from losing your dream home.
Save Money by Starting Here
Owning a home is expensive. Not just because of the monthly bills, but also because if something goes wrong, you cannot just call a property owner anymore to have it fixed. A dripping faucet or a broken window becomes your responsibility now. Here are some tips to keep you on your feet.
- Live beneath your means. What this means is that you should always be saving something. Don't spend leftover money simply because you have it. Strive to keep at least $500 in the bank to assist you with unexpected expenses.
- Use automatic bill payments. Sometimes due dates slip by, and you forget to make that credit card payment. A typical late fee on a credit card is $26. Keep that money in your pocket by ensuring your bills are paid automatically each month.
- Do not file an insurance claim for little things. Homeowner's insurance is great. If something happens to your home, your insurance company will pay for most of the repairs. However, use it too often, and your premium will go up. Use your emergency repair fund. That is what it is there for.
Budget, Budget, Budget
One of the most important things to do is to make a budget and stick to it. Optimally, you should be saving about ten percent of your income every month. Stop living from paycheck to paycheck. One key way to keep ahead is to pay for everything with cash. Stop using credit cards and paying finance fees.
Okay, sometimes things happen and you find yourself stuck for cash a week before payday. Multiple emergencies come up and wipe out your emergency fund. It's a good thing you had that fund in the first place, but now you need some money to tie you over until payday. Payday loans, like those from Payday Express, can be a temporary bandage in these situations. For a premium finance charge, you can get a loan against your next payday to keep gas in your car or to make that next mortgage payment.
Homeownership is a great feeling, but it is also a huge responsibility. Keeping your head above water can sometimes be difficult, no matter how much money you earn. However, with some basic budgeting and saving, the road can be a lot less rocky.