financial tips after buying your first home

Congratulations on your new home! Buying your first home is a major investment, which is why there’s no better time to review your finances and figure out where you can save, improve, and even spend! Read our list of tips to keep the momentum in your financial life going and build a firm foundation for your future.

Review Your Budget

Although it may seem a little daunting, reviewing your budget will pay dividends. Ensure your budget thoroughly covers all the costs of owning your new home, including your mortgage payments, utility costs, and essential maintenance. A good rule of thumb is to set aside a minimum of one percent of your home’s value every year for home maintenance.

Go on a Spending Freeze

A spending freeze typically lasts a few months. It’s a time where you and your partner decide not to spend money on anything beyond necessities. Going on a spending freeze right after purchasing a new home can help you save money fast so you can use it to spend on future projects down the line. It also enables you to replenish your nest egg after using the money for your down payment.

Update Your Insurance

As a first-time buyer, homeowner’s insurance is a must, but have you considered other types of insurance? For example, life insurance can reduce risk if you pass away as the proceeds can help pay off a mortgage. Life insurance can also provide helpful cash flow to cover monthly expenses or pay college tuition for your children if you have a family or are thinking of starting one. A good life insurance policy will give you enough coverage to pay off your mortgage and cover living expenses for your family for the first few years.

Reduce Your Home Energy and Maintenance Costs

Little tweaks can go a long way in saving you money. For instance, you should lower your water heater to 55 degrees Celsius. This is the optimum temperature for hot water because it won’t scald you or your children and will reduce the amount you’re paying on your energy bill. Installing a programmable thermostat is also an excellent way to reduce your heating bill. You can control the temperature remotely and make sure you aren’t heating rooms that aren’t in use. Choosing energy-efficient appliances and LED light-bulbs is another small way to save big! 

Buying your first home is a significant achievement, but it creates new financial responsibilities that can be a little overwhelming. Luckily, by following these financial tips, you can reduce stress and stay ahead of the game, making your dream home precisely that – a dream! For more tips and tricks, don’t forget to read the Falconcrest Homes’ blog.

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