You’ve finally moved into your new home. However, making the monthly mortgage payments won’t be the only item on the list of things to pay for in the budget. You’ll also need to prepare for furnishings, upgrades, maintenance and renovations. Be careful with some of these expenditures, as it’s easy to get carried away with unnecessary spending as a homeowner.
6 Expenses That New Homeowners Splurge and Waste Money On
Furnishing a home can be one of the most exciting parts of the home buying experience. But before you embark on any purchases, make sure to identify and make a list of priorities in order to avoid unnecessary spending.
Your new home may be more spacious than your previous home. For instance, if you move from a studio-type apartment to a single-family home, the extra space may overwhelm you and the first thing you may be tempted to do is fill all of the empty spaces with furniture.
Before you curate your home with new furniture, ask yourself if it’s really urgent. Alternatively, you can reuse some of your existing home furniture to decorate your new home to keep the costs down. Remember that you don’t have to fill every corner of your home right from the get-go.
2. Lawn and maintenance services
First-time home buyers are the usual targets of lawn care providers. They’re the ones who are usually enticed with the idea of a perfect lawn that can augment the home’s appearance. If you allocate time and effort for research, you’ll only need fertilizers and a few tools to beautify your lawn. Although lawn maintenance isn’t an easy task, it’s definitely achievable with the right knowledge, practice and skills.
3. Smart home technology
Investing in smart home technology isn’t always a smart move. Yes, it’s cool, futuristic and convenient. However, overspending to set your lights on automatic mode or linking them to your thermostat isn’t worth the additional costs.
In the same respect, replacing your working refrigerator, stove, dishwasher, washing machine or any appliance can also be unnecessary and impractical. It’s true that these devices won’t last a lifetime, so it would make the most sense to be patient and save money to fund new ones. Shopping around for the best deals or looking for appliance bundles may help you to save some money.
5. Separate issuers for home and auto insurance
Upon completion of your mortgage application, take your time to seek out deals for your home and auto insurance by bundling them together as savings can equate up to 15%.
6. Mortgage default insurance
Rule of thumb is that the smaller the down payment, the longer you’d pay for your mortgage. For instance, a down payment of less than 20% will require the homeowner to pay for mortgage default insurance.
Giving yourself extra time to save up for the 20% down payment, could help save from having to pay the additional expense of mortgage default insurance.
Get Expert Tips
With your own home comes the freedom to upgrade your residence at your own leisure. However, it doesn’t mean that you should splurge and waste money unnecessarily. You should first establish a solid financial foundation by paying down your mortgage and other debts. Talk with a reliable financial professional who can walk you through the path of financial stability and security.
Daisy Raouph is a mortgage broker and financial security advisor with over 30 years of experience in mortgage and financial services. If you need help with your mortgage or seeking financial advice, consult Daisy today.