Overview
Now that you are a new homeowner, it’s important to revisit your budget and do it often so that you have a financially sound plan and can identify areas for savings based on recent spending habits. Below are some quick financial tips and we highly recommend consulting with your financial advisor or consult with one.
Build a Budget
Once you buy a home, some new financial planning and budgeting tasks need to be done as painful as it may sound. Developing a plan and sticking to it will help you to avoid stressful situations down the road. Build a budget that covers all your home costs and set aside enough spare money for repairs and upgrades.
Insurance
Consider insurance beyond homeowners’ insurance. Life and disability coverage need to be considered to cover you if you are unable to work or your family if you pass away. There are different options and these should be discussed with your insurance and/or financial advisor.
Savings and Retirement
Ensure that your budget continues to have savings for retirement, rainy day fund, vacations, and other items that you want as part of your lifestyle. This will help you to avoid becoming a slave to your home. You should have 6-12 months of savings or easily accessible funds in the event something happens. Contributing to your 401K should be a must as this is tax deductible and many employers will match employee contributions, which is free money. Other retirement planning should continue and be discussed with your financial advisor.
Revisit Your Budget
Reviewing your spending habits often and identifying areas where you are being frugal could save in the long-run. Even finding $50 per month yields $600 per year. You should have the mind-set that there is always room for improvement.